^pfipiffEiiii^liPif^^ 


UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


SCHOOL  OF  LAW 
LIBRARY 


TREASURY  DEPARTMENT 
UNITED  STATES  INTERNAL  REVENUE 


REGULATIONS  No.  35 


RELATING  TO  THE 


IMPORTATION,  MANUFACTURE,  PRODUCTION, 

COMPOUNDING.  SALE,  DISPENSING, 

AND  GIVING  AWAY  OF 

OPIUM  OR  COCA  LEAVES 

THEIR  SALTS,  DERIVATIVES, 
OR  PREPARATIONS  THEREOF 

UNDER  THE 

ACT  OF  DECEMBER  1 7.  191 4.  AS  AMENDED  BY 
SECTIONS  1006  AND  1007  OF  THE  REVENUE 
ACT  OF  1918.  AND  UNDER  SECTION  1008 
OF  THE   SAID    REVENUE  ACT  OF    1918 


REVISED  NOVEMBER.  1919 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1919 


/ 


s 


^  TABLE  OF  CONTENTS. 

2s  ■ 

I  THE  LAW. 

Page. 

Act  of  December  17,  1914,  as  amended , 9 

Sec.  1  to  8,  Revenue  Act  of  1918 17 

REGULATIONS. 

GENERAL. 

1.  Explanatory .    19 

2.  Use  of  terms 19 

SPECIAL  TAXES. 

SCOPE   OF   THE  LAW. 

3.  Purpose  of  the  law 20 

4.  Persons  liable 20 

5.  The  liability 20 

KEGISTKATION. 

6.  Manner  of  registering 20 

7.  Time  of  registration 20 

8.  Signatures 20 

9.  Information  as  to  ownership 21 

10.  Oath — when  required 21 

11.  Evidence   of   qualification 21 

12.  Inventory  required 21 

13.  Registry  numbers 21 

14.  Recording  and  filing 21 

15.  Dual  liabilities 22 

16.  Government  officials 22 

NATUBE    AND    MEASXJEE    OF    TAX. 

17.  Nature  and  manner  of  payment  of  taxes 22 

18.  Measure  of  tax 22 

19.  Change  of  ownership 22 

AMOUNTS    TO    BE    PAID. 

20.  Method  of  regulations 23 

21.  Rates  of  tax 23 

22.  Several  different  occupations 23 

23.  Several  businesses  of  same  kind 24 

24.  Importers 24 

25.  Manufacturers    and    compounders 24 

26.  Producers 25 

27.  Chemists 25 

28.  Wholesale  dealers 25 

29.  Retail  dealers 25 

30.  Practitioners 26 

31.  Branches -—  26 

32.  Offices -—  26 

3 


4  CONTENTS. 

Page. 

33.  Warehouses 26 

34.  Partnerships 20 

35.  Institutions 26 

ITINEKANT  VENDORS. 

36.  Itinerant  vendors 27 

PBINCIPAL   AND   AGENT. 

37.  Principals 27 

38.  Employees 27 

39.  Nurses 27 

40.  Traveling  salesmen 27 

OFFICIALS   or  FEDERAL,    STATE,   MUNICIPAL   GOVERNMENTS,    ETC. 

41.  Exempt  officials 28 

42.  Evidence   of   exemption 28 

43.  Procurement  of  drugs 28 

44.  Prescriptions   and    orders 29 

45.  Filling  orders  and  prescriptions 29 

46.  Records 29 

47.  Caution    required 29 

48.  Stamp  tax 29 

GOVERNMENT  IRSTITtrXIONS. 

49.  Government    institutions 29 

50.  Railroad  companies  under  Federal  Control 30 

VIOLATIONS    OF    LAW. 

51.  Violations 30 

DEFINITION. 

52.  Definition 30 

General  Provisions  of  Law. 

53.  Provisions   applicable 30 

DeUnquenci/  in  flling  returns. 

54.  When  penalty  accrues 31 

Stamps. 

55.  Stamps 32 

Posting  of  stamps. 

56.  Posting  of  stamps 32 

List  of  taxpayers. 

57.  List  of  taxiiayers 33 

Changes  of  oicnersMp. 

58.  Change  of  ownership  through  death 33 


CONTENTS.  5 

Change  of  address. 

Page. 

59.  Procedure  by  taxpayer 34 

60.  Procedure  by  collector — removal  within  district 34 

61.  Procedure  by  collector — removal  to  another  district 34 

62.  Failure  to  report  liability 34 

63.  Certificates  in  lieu  of  stamps  lost  or  destroyed 34 

STAMP  TAX. 

GENERAL. 

64.  Scope  of  law • 35 

65.  Who   is  liable 36 

66.  Measure  of  tax 36 

67.  Manner  of  payment - 36 

68.  Unit  of  tax 36 

69.  Time  of  payment 36 

70.  Kinds  of  stamps 36 

71.  Procurement  of  stamps 36 

72.  Remanufacture 37 

73.  Repacking 37 

74.  Exports 37 

75.  Marking    containers 37 

EXEMPTIONS. 

76.  Exempt  preparations 37 

77.  Government   officials 37 

78.  Prescriptions  and  solutions  for  practitioners 38 

CANCELLATION    OF    STAMPS. 

79.  Cancellation   of   stamps__ 38 

FORFEITURE. 

80.  Forfeiture  of  unstamped  packages 38 

MONTHLY  REPORTS. 


IMPORTERS,    MANUFACTURERS,    ETC. 

81.  General 38 

82.  Receipts 39 

83.  Dispositions 39 

84.  Summary 40 

85.  Stamp   account 40 

WHOLESALE     DEALERS. 

86.  General 41 

87.  Receipts 41 

88.  Dispositions 41 

89.  Summary 42 

TRANSFERS,   ETC. 

ISO.  Transfers— class  1 42 

91.  Collectors  will  examine  and  forward  report 43 

92.  Transfer  of  business — class  1  or  2 43 


6  CONTENTS. 

MJSCELLINEOI'S  REGULATIONS. 

Page. 

93.  Chemists 44 

94.  Manner  ot  keeping  drugs 44 

95.  Losses  by   accident 44 

96.  Procedure  in  case  of  theft 44 

97.  Court    sales 44 

98.  Unclaimed  freight  or  express  packages . 44 

99.  Ocean    vessels ^ 45 

ORDER  FORMS. 

PROCUREMENT. 

100.  Purpose  of  order  forms 47 

101.  Analytical    chemists 47 

102.  Not  required,  when . 47 

103.  By   whom   procurable 47 

104.  Manner  of  procurement  and  issuance 48 

105.  Requisitions  to  be  filed- _^ 48 

106.  Signatures  to  be  compared 48 

EXECUTION   AND   FILING. 

107.  General 48 

108.  Signature 49 

109.  Entering  of  items — fluid  preparations 49 

110.  Unaccepted  orders 49 

111.  Forms  mutilated,  lost,  or  desti'oyed 49 

112.  Unused  forms 50 

113.  Narcotics  lost  in  transit . 50 

114.  Miscellaneous 51 

RETAILERS  AND  PRACTITIONERS. 

Prescriptions,  gederal. 

115.  Who   may   issue ^ 51 

116.  Who   may   fill 51 

117.  Purpose   of  issue . 51 

Execution  of  prescriptions. 

118.  Responsibility 52 

119.  Manner  of  execution — practitioners 52 

120.  Refilling 52 

121.  Partial    filling 52 

122.  Telephone  orders 52 

128.  Forms  to  be  used 52 

124.  Filing v 53 

125.  Labels   on   containers 53 

Dispensing  hy  practitioners. 

126.  Dispensing  by  practitioners 53 

Records. 

127.  Retailers 53 

128.  Practitioners,  hospitals,  etc 53 

129.  Form  of  record 54 

130.  Stock   solutions 54 


CONTENTS. 


Statements. 

Page. 

131.  Collector  will  require  statement  whenever  he  deems  it  advisable 55 

132.  Collector  will  furnish  blank  form 55 

Transpoktation. 

133.  Transportation 55 

Inspections. 

134.  Records  open  to  inspection 56 

135.  Procedure  by  officers 56 

136.  Samples  to  be  taken 56 

137.  Unnecessary  interference  prohibited 57 

138.  Improper  disclosures 57 

EXEMPT  PREPAEATIONS. 

139.  Registration 58 

140.  Tax   liability 58 

141.  Scope  of  the  law 58 

142.  Exempt  preparations — internal 59 

143.  Exempt  preparations — external 59 

144.  Paregoric 59 

145.  Prescriptions   unnecessary 59 

146.  Private  formulfe 59 

147.  Order  forms : 60 

148.  Records 60 

General  Provisions. 

149.  Compromise 61 

150.  Redemption  of  stamps 61 

151.  Other  provisions 61 

Unlawful  Possession. 

152.  References — possession 62 

Punishment. 

153.  Rigorous  enforcement 62 

Seizures. 

154.  Reports 63 

Authority  for  Regulations. 

155.  Promulgation  of  regulations 63 


LAW  AND  REGULATIONS. 


RELATING    TO    THE 


IMPORTATION,  MANUFACTURE,  PRODUCTION,  COM- 
POUNDING, SALE,  DEALING  IN,  DISPENSING,  AND  GIV- 
ING AWAY  OF  OPIUM  OR  COCA  LEAVES,  THEIR  SALTS, 
DERIVATIVES,  OR  PREPARATIONS  THEREOF. 


THE  LAW. 

(Act  of  December  17.  1914,  as  amended  by  sections  1006  and  1007  of  the  Revenue 

Act  of  1918. ) 

Be  it  en<iGted  l>y  the  Senate  and  House  of  Representatives  of  the 
United  States  of  Amenca  in  Congress  assembled: 

Section  1.  That  on  or  before  July  1  of  each  year  every  person  who 
imports,  manufactures,  produces,  compounds,  sells,  deals  in,  dis- 
penses, or  gives  away  opium  or  coca  leaves,  or  any  compound,  manu- 
facture, salt,  derivative,  or  preparation  thereof,  shall  register  with 
the  collector  of  internal  revenue  of  the  district  his  name  or  style, 
place  of  business  and  place  or  places  where  such  business  is  to  be 
carried  on,  and  pay  the  special  taxes  hereinafter  provided; 

Every  person  who  on  January  1,  1919,  is  engaged  in  any  of  the 
activities  above  enumerated,  or  who  between  such  date  and  the  pas- 
sage of  this  Act  first  engages  in  any  of  such  activities,  shall  within  30 
days  after  the  passage  of  this  Act  make  like  registration,  and  shall 
pay  the  proportionate  part  of  the  tax  for  the  period  ending  June  30, 
1919;  and 

Every  person  who  first  engages  in  any  of  such  activities  after  the 
passage  of  this  Act  shall  immediately  make  like  registration  and  pay 
the  proportionate  part  of  the  tax  for  the  period  ending  on  the  fol- 
lowing June  30th ; 

Importers,  manufacturers,  producers,  or  compounders,  $24  per 
annum;  wholesale  dealers,  $12  per  annum;  retail  dealers,  $6  per 
annum;  physicians,  dentists,  veterinary  surgeons,  and  other  prac- 
titioners lawfully  entitled  to  distribute,  dispense,  give  away,  or 
administer  any  of  tlie  aforesaid  drugs  to  patients  upon  whom  they 
in  the  course  of  their  professional  practice  are  in  attendance,  shall 
pay  $3  per  annum. 

140106°— 19 2  S 


10  NARCOTICS. 

Every  person  who  imports,  manufactures,  compounds,  or  other- 
wise produces  for  sale  or  distribution  any  of  the  aforesaid  drugs  shall 
be  deemed  to  be  an  importer,  manufacturer,  or  producer. 

Every  person  who  sells  or  offers  for  sale  any  of  said  drugs  in  the 
original  stamped  packages,  as  hereinafter  provided,  shall  be  deemed 
a  wholesale  dealer. 

Every  person  who  sells  or  dispenses  from  original  stamped 
packages,  as  hereinafter  provided,  shall  be  deemed  a  retail  dealer: 
Provided^  That  the  office,  or  if  none,  the  residence,  of  any  person 
shall  be  considered  for  the  purpose  of  this  Act  his  place  of  business ; 
but  no  employee  of  any  person  who  has  registered  and  paid  special 
tax  as  herein  required,  acting  within  the  scope  of  his  employment, 
shall  be  required  to  register  and  pay  special  tax  provided  by  this 
section :  Provided  further^  That  officials  of  the  United  States,  Terri- 
torial, District  of  Columbia,  or  insular  possessions.  State  or  munici- 
pal governments,  who  m  the  exercise  of  their  official  duties  engage  in 
any  of  the  business  herein  described,  shall  not  be  required  to  register, 
nor  pay  special  tax,  nor  stamp  the  aforesaid  drugs  as  hereinafter  pre- 
scribed, but  their  right  to  this  exemption  shall  be  evidenced  in  such 
manner  as  the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  may  by  regulations  j)rescribe. 

It  shall  be  unlawful  for  any  person  required  to  register  under  the 
provisions  of  this  Act  to  import,  manufacture,  produce,  compound, 
sell,  deal  in,  dispense,  distribute,  administer,  or  give  away  any  of 
the  aforesaid  drugs  without  having  registered  and  paid  the  special 
tax  as  imposed  by  this  section. 

That  the  word  "  person  "  as  used  in  this  Act  shall  be  construed  to 
mean  and  include  a  partnership,  association,  company,  or  corpora- 
tion, as  well  as  a  natural  person ;  and  all  provisions  of  existing  law 
relating  to  special  taxes,  as  far  as  necessary,  are  hereby  extended 
and  made  applicable  to  this  section. 

That  there  shall  be  levied,  assessed,  collected,  and  paid  upon 
opium,  coca  leaves,  any  compoimcl,  salt,  derivative,  or  preparation 
thereof,  produced  in  or  imported  into  the  United  States,  and  sold, 
or  removed  for  consumption  or  sale,  an  internal -revenue  tax  at  the 
rate  of  1  cent  per  ounce,  and  any  fraction  of  an  ounce  in  a  package 
shall  be  taxed  as  an  ounce,  such  tax  to  be  paid  by  the  importer, 
manufacturer,  producer,  or  compounder  thereof,  and  to  be  repre- 
sented by  appropriate  stamps,  to  be  provided  by  the  Commissioner 
of  Internal  Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury;  and  the  stamps  herein  provided  shall  be  so  affixed  to  the 
bottle  or  other  container  as  to  securely  seal  the  stopper,  covering,  or 
wrapper  thereof. 

The  tax  imposed  by  this  section  shall  be  in  addition  to  any 
import  duty  imposed  on  the  aforesaid  drugs. 


NARGOTICS.  11 

It  shall  be  unlawful  for  any  person  to  purchase,  sell,  dispense,  or 
distribute  any  of  the  aforesaid  drugs  except  in  the  original  stamped 
package  or  from  the  original  stamped  package;  and  the  absence  of 
appropriate  tax-paid  stamps  from  any  of  the  aforesaid  drugs  shall  be 
prima  facie  evidence  of  a  violation  of  this  section  by  the  person  in 
whose  possession  same  may  be  found;  and  the  possession  of  any 
original  stamped  package  containing  any  of  the  aforesaid  drugs  by 
any  person  who  has  not  registered  and  paid  special  taxes  as  required 
by  this  section  shall  be  prima  facie  evidence  of  liability  to  such  spe- 
cial tax :  Provided^  That  the  provisions  of  this  paragi-aph  shall  not 
apply  to  any  person  having  in  his  or  her  possession  any  of  the  afore- 
said drugs  which  have  been  obtained  from  a  registered  dealer  in  pur- 
suance of  a  prescription,  written  for  legitimate  medical  uses,  issued 
by  a  physician,  dentist,  veterinary  surgeon,  or  other  practitioner 
registered  under  this  Act;  and  where  the  bottle  or  other  container  in 
which  such  drug  may  be  put  up  by  the  dealer  upon  said  prescription 
bears  the  name  and  registry  number  of  the  druggist,  serial  number 
of  prescription,  name  and  address  of  the  patient,  and  name,  address, 
and  registry  number  of  the  person  writing  said  prescription;  or  to 
the  dispensing,  or  administration,  or  giving  away  of  any  of  the  afore- 
said drugs  to  a  patient  by  a  registered  physician,  dentist,  veterinary 
surgeon,  or  other  practitioner  in  the  course  of  his  professional  prac- 
tice, and  where  said  drugs  are  dispensed  or  administered  to  the 
patient  for  legitimate  medical  purposes,  and  the  record  kept  as  re- 
quired by  this  Act  of  the  drugs  so  dispensed,  administered,  dis- 
tributed, or  given  away. 

And  all  the  provisions  of  existing  laws  relating  to  the  engraving, 
issuance,  sale,  accountability,  cancellation,  and  destruction  of  tax- 
paid  stamps  provided  for  in  the  internal-revenue  laws  are,  in  so  far 
as  necessary,  hereby  extended  and  made  to  apply  to  stamps  provided 
by  this  section. 

That  all  unstamped  packages  of  the  aforesaid  drugs  found  in  the 
possession  of  any  person,  except  as  herein  provided,  shall  be  subject 
to  seizure  and  forfeiture,  and  all  the  provisions  of  existing  internal 
revenue  laws  relating  to  searches,  seizures,  and  forfeitures  of  un- 
stamped articles  are  hereby  extended  to  and  made  to  apply  to  the 
articles  taxed  under  this  Act  and  the  persons  upon  whom  these  taxes 
are  imposed. 

Importers,  manufacturers,  and  wholesale  dealers  shall  keep  such 
books  and  records  and  render  such  monthly  returns  in  relation  to 
the  transactions  in  the  aforesaid  drugs  as  the  Commissioner  of  In- 
ternal Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
may  by  regulations  require. 

The  Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretar}^  of  the  Treasury,  shall  make  all  needful  rules  and  regu- 
lations for  carrying  the  provisions  of  this  Act  into  effect. 


12  KARCOTICS. 

Sec.  2.  That  it  shall  be  unUnvl'iil  for  any  person  to  sell,  barter,  ex- 
change, or  give  away  any  of  the  aforesaid  drugs  except  in  pursuance 
of  a  "written  order  of  the  person  to  whom  such  article  is  sold,  bartered, 
exchanged,  or  given,  on  a  form  to  be  issued  in  blank  for  that  pur- 
pose by  the  Commissioner  of  Internal  Eevenue.  Every  person  who 
shall  accept  any  such  order,  and  in  pursuance  thereof  shall  sell,  bar- 
ter, exchange,  or  give  away  any  of  the  aforesaid  drugs,  shall  preserve 
such  order  for  a  period  of  two  years  in  such  a  way  as  to  be  readily 
accessible  to  inspection  by  any  officer,  agent,  or  employee  of  the 
Treasury  Department  duly  authorized  for  that  purpose,  and  the 
State,  Territorial,  District,  municipal,  and  insular  officials  named 
in  section  5  of  this  Act.  Every  person  who  shall  give  an  order  as 
herein  provided  to  any  other  person  for  any  of  the  aforesaid  drugs 
shall,  at  or  before  the  time  of  giving  such  order,  make  or  cause  to  be 
made  a  duplicate  thereof  on  a  form  to  be  issued  in  blank  for  that 
purpose  by  the  Commissioner  of  Internal  Revenue,  and  in  case  of 
the  acceptance  of  such  order,  shall  preserve  such  duplicate  for  said 
period  of  two  years  in  such  a  way  as  to  be  readily  accessible  to  in- 
spection by  the  officers,  agents,  employees,  and  officials  hereinbefore 
mentioned.    Nothing  contained  in  this  section  shall  apply — 

(a)  To  the  dispensing  or  distribution  of  any  of  the  aforesaid 
drugs  to  a  patient  by  a  physician,  dentist,  or  veterinary  surgeon  reg- 
istered under  this  Act  in  the  course  of  his  professional  practice  only : 
Provided,  That  such  physician,  dentist,  or  veterinary  surgeon  shall 
keep  a  record  of  all  such  drugs  dispensed  or  distributed,  showing  the 
amount  dispensed  or  distributed,  the  date,  and  the  name  and  address 
of  the  patient  to  whom  such  drugs  are  dispensed  or  distributed,  ex- 
cept such  as  may  be  dispensed  or  distributed  to  a  patient  upon  whom 
such  physician,  dentist  or  veterinary  surgeon  shall  personally  at- 
tend ;  and  such  record  shall  be  kept  for  a  period  of  two  years  from 
the  date  of  dispensing  or  distributing  such  drugs,  subject  to  inspec- 
tion, as  provided  in  this  Act. 

(b)  To  the  sale,  dispensing,  or  distribution  of  any  of  the  aforesaid 
drugs  by  a  dealer  to  a  consumer  under  and  in  pursuance  of  a  written 
prescription  issued  by  a  physician,  dentist,  or  veterinary  surgeon 
registered  under  this  Act:  Provided,  however,  That  such  prescrip- 
tion shall  be  dated  as  of  the  day  on  which  signed  and  shall  be  signed 
by  the  physician,  dentist,  or  veterinary  surgeon  who  shall  have 
issued  the  same :  And  provided  further,  That  such  dealer  shall  pre- 
serve such  prescription  for  a  period  of  two  years  from  the  day  on 
which  such  prescription  is  filled  in  such  a  way  as  to  be  readily  ac- 
cessible to  inspection  by  the  officers,  agents,  employees,  and  officials 
hereinbefore  mentioned. 

(c)  To  the  sale,  exportation,  shipment  or  delivery  of  any  of  the 
aforesaid  drugs  by  any  person  within  the  United  States  or  any  Ter- 


NARCOTICS.  13 

ritory  or  the  District  of  Columbia  or  any  of  the  insular  possessions 
of  the  United  States  to  any  pereon  in  any  foreign  country,  regulat- 
ing their  entry  in  accordance  with  such  regulations  for  importation 
thereof  into  such  foreign  country  as  are  prescribed  by  said  country, 
such  regulations  to  be  promulgated  from  time  to  time  by  the  Secre- 
tary of  State  of  the  United  States. 

(d)  To  the  sale,  barter,  exchange,  or  giving  a«^vay  of  any  of  the 
aforesaid  drugs  to  any  officer  of  the  United  States  Government  or  of 
any  State,  territorial,  district,  county,  or  municipal  or  insular  gov- 
ernment lawfully  engaged  in  making  purchases  thereof  for  the  vari- 
ous departments  of  the  Army  and  Navy,  the  Public  Health  Service, 
and  for  Government,  State,  territorial  district,  county,  or  municipal 
or  insular  hospitals  or  prisons. 

The  Commissioner  of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  shall  cause  suitable  forms  to  be  prepared 
for  the  purposes  above  mentioned,  and  shall  cause  the  same  to  be 
distributed  to  collectors  of  internal  revenue  for  sale  by  them  to  those 
persons  who  shall  have  registered  and  paid  the  special  tax  as  re- 
quired by  section  one  of  this  Act  in  their  districts,  respectively ;  and 
no  collector  shall  sell  any  of  such  forms  to  any  persons  other  than  a 
person  who  has  registered  and  paid  the  special  tax  as  required  by 
section  one  of  this  Act  in  his  district.  The  price  at  which  such  forms 
shall  be  sold  by  said  collectors  shall  be  fixed  by  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
but  shall  not  exceed  the  sum  of  $1  per  hundred.  Every  collector  shall 
keep  an  account  of  the  number  of  such  forms  sold  by  him,  the  names 
of  the  purchasers,  and  the  number  of  such  forms  sold  to  each  of  such 
purchasers.  Whenever  any  collector  shall  sell  any  of  such  forms,  he 
shall  cause  the  name  of  the  purchaser  thereof  to  be  plainly  written 
or  stamped  thereon  before  delivering  the  same ;  and  no  person  other 
than  such  purchaser  shall  use  any  of  said  forms  bearing  the  name 
of  such  purchaser  for  the  purpose  of  procuring  any  of  the  aforesaid 
drugs,  or  furnish  any  of  the  forms  bearing  the  name  of  such  pur- 
chaser to  any  person  with  intent  thereby  to  procure  the  shipment  or 
delivery  of  any  of  the  aforesaid  drugs.  It  shall  be  unlawful  for  any 
person  to  obtain  by  means  of  said  order  forms  any  of  the  aforesaid 
drugs  for  any  purpose  other  than  the  use,  sale,  or  distribution  thereof 
by  him  in  the  conduct  of  a  lawful  business  in  said  drugs  or  in  the 
legitimate  practice  of  his  profession. 

The  provisions  of  this  Act  shall  apply  to  the  United  States,  the 
District  of  Columbia,  the  Territory  of  Alaska,  the  Territory  of  Ha- 
waii, the  insular  possessions  of  the  United  States,  and  the  Canal 
Zone.  In  Porto  Rico  and  the  Philippine  Islands  the  administration 
of  this  Act,  the  collection  of  the  said  special  tax,  and  the  issuance  of 
the  order  forms  specified  in  section  two  shall  be  performed  by  the 


14  NARCOTICS. 

appropriate  internal-revpnue  officers  of  those  governments,  and  all 
revenues  collected  hereunder  in  Porto  Rico  and  the  Philippine  Is- 
lands shall  accrue  intact  to  the  general  governments  thereof,  respec- 
tively. The  courts  of  first  instance  in  the  Philippine  Islands  shall 
possess  and  exercise  jurisdiction  in  all  cases  arising  under  this  Act 
in  said  islands.  The  President  is  authorized  and  directed  to  issue 
such  Executive  orders  as  will  carry  into  effect  in  the  Canal  Zone  the 
intent  and  purpose  of  this  Act  by  providing  for  the  registration 
and  the  imposition  of  a  special  tax  upon  all  persons  in  the  Canal 
Zone  who  produce,  import,  compound,  deal  in,  dispense,  sell,  dis- 
tribute, or  give  away  opium  or  coca  leaves,  their  salts,  derivatives, 
or  preparations. 

Sec.  3.  That  any  person  who  shall  be  registered  in  any  internal 
revenue  district  under  the  provisions  ox  section  one  of  this  Act,  shall 
whenever  required  so  to  do  by  the  collector  of  the  district,  render 
to  the  said  collector  a  true  and  correct  statement  or  return,  verified 
by  affidavit,  setting  forth  the  quantity  of  the  aforesaid  drugs  re- 
ceived by  him  in  said  internal-revenue  district  during  such  period 
immediately  preceding  the  demand  of  the  collector,  not  exceeding 
three  months,  as  the  said  collector  may  fix  and  determine ;  the  names 
of  the  persons  from  whom  the  said  drugs  were  received ;  the  quantity 
in  each  instance  received  from  each  of  such  persons,  and  the  date 
when  received. 

Sec.  4,  That  it  shall  be  unlawful  for  any  person  who  shall  not 
have  registered  and  paid  the  special  tax  as  required  by  section  one 
of  this  Act  to  send,  ship,  carry,  or  deliver  any  of  the  aforesaid  drugs 
from  any  State  or  Territory  or  the  District  of  Columbia,  or  any  in- 
sular possession  of  the  United  States,  to  any  person  in  any  other 
State  or  Territory  or  the  District  of  Columbia  or  any  insular  pos- 
session of  the  United  States:  Provided.,  That  nothing  contained  in 
this  section  shaii  apply  to  common  carriers  engaged  in  transporting 
the  aforesaid  drugs,  or  to  any  employee  acting  within  the  scope  of 
his  employment,  of  any  person  who  shall  have  registered  and  paid 
the  special  tax  as  required  by  section  one  of  this  Act,  or  to  any  per- 
son who  shall  deliver  any  such  drug  which  has  been  prescribed  or 
dispensed  by  a  physician,  dentist,  or  veterinarian  required  to  regis- 
ter under  the  terms  of  this  Act,  who  has  been  employed  to  prescribe 
for  the  particular  patient  receiving  such  drug,  or  to  any  United 
States,  State,  county,  municipal.  District,  Territorial,  or  insular  of- 
ficer or  official  acting  within  the  scope  of  his  official  duties. 

Sec.  5.  That  the  duplicate  order  forms  and  the  prescriptions  re- 
quired to  be  preserved  under  the  provisions  of  section  two  of  this  Act, 
and  the  statements  or  returns  filed  in  the  office  of  the  collector  of  the 
district,  under  the  provisions  of  section  three  of  this  Act.  shall  be 


NAECOTICS.  15 

open  to  inspection  by  officers,  agents,  and  employees  of  the  Treasury 
Department  duly  authorized  for  that  purpose;  and  such  officials  of 
any  State  or  Territory,  or  of  any  organized  municipality  therein,  or 
of  the  District  of  Columbia,  or  any  insular  possession  of  the  United 
States,  as  shall  be  charged  with  the  enforcement  of  any  law  or  munic- 
ipal ordinance  regulating  the  sale,  prescribing,  dispensing,  dealing 
in,  or  distribution  of  the  aforesaid  drugs.  Each  collector  of  internal 
revenue  is  hereby  authorized  to  furnish,  upon  written  request,  certi- 
fied copies  of  any  of  the  said  statements  or  returns  filed  in  his  office  to 
any  of  such  officials  of  any  State  or  Territory  or  organized  municipal- 
it}^  therein,  or  the  District  of  Columbia,  or  any  insular  possession  of 
the  United  States,  as  shall  be  entitled  to  inspect  the  said  statements 
or  returns  filed  in  the  office  of  the  said  collector,  upon  the  payment  of 
a  fee  of  $1  for  each  one  hundred  words  or  fi'action  thereof  in  the 
copy  or  copies  so  requested.  Any  person  who  shall  disclose  the  infor- 
mation contained  in  the  said  statements  or  returns  or  in  the  said 
duplicate  order  forms,  except  as  herein  expressly  provided,  and  ex- 
cept for  the  purpose  of  enforcing  the  provisions  of  this  Act,  or  for 
the  purpose  of  enforcing  any  law  of  any  State  or  Territory  or  the 
District  of  Columbia,  or  any  insular  possession  of  the  United  States, 
or  ordinance  of  any  organized  municipality  therein,  regulating  the 
sale,  prescribing,  dispensing,  dealing  in,  or  distribution  of  the  afore- 
said drugs,  shall,  on  conviction,  be  fined  or  imprisoned  as  provided 
by  section  nine  of  this  Act.  And  collectors  of  internal  revenue  are 
hereby  authorized  to  furnish  upon  written  request,  to  any  person,  a 
certified  copy  of  the  names  of  any  or  all  persons  who  may  be  listed 
in  their  respective  collection  districts  as  special  taxpayers  under  the 
provisions  of  this  Act,  upon  pajaiient  of  a  fee  of  $1  for  each  one 
hundred  names  or  fraction  thereof  in  the  copy  so  requested. 

Sec.  6.  That  the  provisions  of  this  Act  shall  not  be  construed  to 
apply  to  the  manufacture,  sale,  distribution,  giving  away,  dispens- 
ing, or  possession  of  preparations  and  remedies  which  do  not  con- 
tain more  than  two  grains  of  opium,  or  more  than  one-fourth  of  a 
grain  of  morphine,  or  more  than  one-eighth  of  a  grain  of  heroin, 
or  more  than  one  grain  of  codeine,  or  any  salt,  or  derivative  of  any 
of  them  in  one  fluid  ounce,  or,  if  a  solid  or  semisolid  preparation,  in 
one  avoirdupois  ounce ;  or  to  liniments,  ointments,  or  other  prepara- 
tions which  are  prepared  for  external  use,  only,  except  liniments, 
ointments,  and  other  preparations  which  contain  cocaine  or  any  of 
its  salts  or  alpha  or  beta  eucaine  or  any  of  their  salts  or  any  synthetic 
substitute  for  them :  Provided^  That  such  remedies  and  preparations 
are  manufactured,  sold,  distributed,  given  away,  dispensed,  or  pos- 
sessed as  medicines  and  not  for  the  purpose  of  evading  the  intentions 
and  provisions  of  this  Act :  Provided  further^  That  any  manufacturer, 


16  NARCOTICS. 

l)roducer.  compounder,  or  vendor  (including  dispensing  physicians) 
of  the  preparations  and  remedies  mentioned  in  this  section  shall 
keep  a  record  of  all  sales,  exchanges,  or  gifts  of  such  preparations 
and  remedies  in  such  manner  as  the  Commissioner  of  Internal  Reve- 
nue, with  the  approval  of  the  Secretary  of  the  Treasury,  shall  direct. 
Such  record  shall  be  preserved  for  a  period  of  two  years  in  such  a 
way  as  to  be  readily  accessible  to  inspection  by  any  officer,  agent  or 
employee  of  the  Treasury  Department  duly  authorized  for  that  pur- 
pose, and  the  State,  Territorial,  District,  municipal,  and  insular  offi- 
cers named  in  section  5  of  this  Act,  and  every  such  person  so  possess- 
ing or  disposing  of  such  preparations  and  remedies  shall  register  as 
required  in  section  1  of  this  Act  and,  if  he  is  not  paying  a  tax  under 
this  Act,  he  shall  pay  a  special  tax  of  $1  for  each  year,  or  fractional 
part  thereof,  in  which  he  is  engaged  in  such  occupation,  to  the  col- 
lector of  internal  revenue  of  the  district  in  which  he  carries  on  such 
occupation  as  provided  in  this  Act.  The  provisions  of  this  Act  as 
amended  shall  not  apply  to  decocainized  coca  leaves  or  preparations 
made  therefrom,  or  to  other  preparations  of  coca  leaves  which  do 
not  contain  cocaine. 

Sec.  T.  That  all  laws  relating  to  the  assessment,  collection,  re- 
mission, and  refund  of  internal-revenue  taxes  including  section 
thirty-two  hundred  and  twenty-nine  of  the  Revised  Statutes  of  the 
United  States,  so  far  as  applicable  to  and  not  inconsistent  with  the 
provisions  of  this  Act,  are  hereby  extended  and  made  applicable  to 
the  special  taxes  imposed  by  this  Act. 

Sec.  8.  That  it  shall  be  unlawful  for  any  person  not  registered 
under  the  provisions  of  this  Act,  and  who  has  not  paid  the  special 
tax  provided  for  by  this  Act,  to  have  in  his  possession  or  under  his 
control  any  of  the  aforesaid  drugs;  and  such  possession  or  control 
shall  be  presumptive  evidence  of  a  violation  of  this  section,  and  also 
of  a  violation  of  the  provisions  of  section  one  of  this  Act :  Provided^ 
That  this  section  shall  not  apply  to  any  employee  of  a  registered  per- 
son, or  to  a  nurse  under  the  supervision  of  a  physician,  dentist,  or 
veterinary  surgeon  registered  under  this  Act,  having  such  possession 
or  control  by  virtue  of  his  emploj'ment  or  occupation  and  not  on 
his  own  account;  or  to  the  possession  of  any  of  the  aforesaid  drugs 
which  has  or  have  been  prescribed  in  good  faith  by  a  physician, 
dentist,  or  veterinary  surgeon  registered  under  this  Act;  or  to  any 
United  States,  State,  county,  municipal.  District,  Territorial,  or  in- 
sular officer  or  official  who  has  possession  of  any  said  drugs,  by  rea- 
son of  his  official  duties,  or  to  a  warehouseman  holding  possession 
for  a  person  registered  and  who  has  paid  the  taxes  under  this  Act; 
or  to  common  carriers  engaged  in  transporting  such  drugs :  Provided 
further^  That  it  shall  not  be  necessary  to  negative  any  of  the  afore- 


NAECOTICS.  1 7 

said  exemptions  in  any  comx^laint,  information,  indictment,  or  other 
writ  or  proceeding  laid  or  brought  under  this  Act ;  and  the  burden 
of  proof  of  any  such  exemption  shall  be  upon  the  defendant. 

Seo.  9.  That  any  person  who  violates  or  fails  to  comply  with  any 
of  the  requirements  of  this  Act  shall,  on  conviction,  be  fined  not  more 
than  $2,000  or  be  imprisoned  not  more  than  five  years,  or  both,  in  the 
discretion  of  the  court. 

Sec.  10.  That  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  is  authorized  to  appoint 
such  agents,  deputy  collectors,  inspectors,  chemists,  assistant  chem- 
ists, clerks,  and  messengers  in  the  field  and  in  the  Bureau  of  Internal 
Revenue  in  the  District  of  Columbia  as  may  be  necessary  to  enforce 
the  provisions  of  this  Act. 

Sec.  11.  That  the  sum  of  $150,000,  or  so  much  thereof  as  may  be 
necessary,  be,  and  hereby  is,  appropriated,  out  of  any  moneys  in  the 
Treasury  not  otherwise  appropriated,  for  the  purpose  of  carrying 
into  effect  the  provisions  of  this  Act. 

Sec.  12.  That  nothing  contained  in  this  Act  shall  be  construed  to 
impair,  alter,  amend,  or  repeal  any  of  the  provisions  of  the  Act  of 
Congress  approved  June  thirtieth,  nineteen  hundred  and  six,  entitled 
"  An  Act  for  preventing  the  manufacture,  sale,  or  transportation  of 
adulterated  or  misbranded,  or  poisonous,  or  deleterious  foods,  drugs, 
medicines,  and  liquors,  and  for  regulating  traffic  therein,  and  for 
other  purposes,"  and  any  amendment  thereof,  or  of  the  Act  approved 
February  ninth,  nmeteen  hundred  and  nine,  entitled  "  An  Act  to 
prohibit  the  importation  and  use  of  ox3iuni  for  other  than  medicinal 
purposes,"  and  any  amendment  thereof. 

(Section  1008  of  tlie  Revenue  Act  of  191S,  approved  February  24,  1919.) 

"  That  all  opium,  its  salts,  derivatives,  and  compounds,  and  coca 
leaves,  salts,  derivatives,  and  compounds  thereof,  which  may  now  be 
under  seizure  or  which  may  hereafter  be  seized  by  the  United  States 
Govermnent  from  any  person  or  persons  charged  with  any  violation 
of  the  Act  of  October  1,  1890,  as  amended  by  the  Acts  of  March  3, 
1897,  February  9, 1909,  and  January  17, 1914,  or  the  Act  of  December 
17,  1914,  shall  upon  conviction  of  the  person  or  persons  from  whom 
seized  be  confiscated  by  and  forfeited  to  the  United  States,  and  the 
Secretary  is  hereby  authorized  to  deliver  for  medical  or  scientific  pur- 
poses to  any  department,  bureau,  or  other  agency  of  the  United  States 
Government,  upon  proper  ap})licati()n  therefor  under  such  regulation 
as  may  be  prescribed  by  the  Commissioner,  with  the  approval  of  the 
Secretary,  any  of  the  drugs  so  seized,  confiscated,  and  forfeited  to  the 
United  States. 

140106°— 19 3 


18  NARCOTICS. 

"The  provisions  of  this  section  shall  also  apply  to  any  of  the 
aforesaid  drugs  seized  or  coming  into  the  possassion  of  the  United 
States  in  the  enforcement  of  any  of  the  above-mentioned  acts,  where 
the  owner  or  owners  thereof  are  unknown.  None  of  the  aforesaid 
drugs  coming  into  possession  of  the  United  States  under  the  opera- 
tion of  said  acts,  or  the  provisions  of  this  section,  shall  be  destroyed 
without  certification  by  a  committee  appointed  by  the  Commissioner, 
with  the  aj^proval  of  the  Secretary,  that  they  are  of  no  value  for 
medical  or  scientific  purposes." 


REGULATIONS.  . 

GENERAL. 

Article  1.  Explanatory. — These  regulations  have  been  prepared  in 
accordance  with  the  plan  adopted  in  preparing  other  regulations, 
recently  emanating  from  the  Bureau  of  Internal  Revenue,  of  placing 
the  various  articles  in  juxtaposition  with  the  provisions  of  law  to 
which  they  most  nearly  relate.  The  act  of  December  17,  1914,  as 
amended,  and  section  1008  of  the  act  of  February  24, 1919,  are  printed 
in  their  entirety  on  pages  9  to  18. 

The  passages  printed  in  small  type  hereafter  are  quoted  either 
from  the  act  of  December  17,  1914,  as  amended,  or  from  other  per- 
tinent statutes.  All  passages  not  otherwise  indicated  are  from  the 
act  of  December  17,  1914. 

Art.  2.  "Use  of  terms — Person. — ^The  word  "person"  occurring  in 
these  regulations  is  used  to  include  partnerships,  associations,  com- 
panies, and  corporations ;  also  hospitals,  colleges  of  pharmacy,  dental 
clinics,  sanatoriums  and  any  other  institutions  or  entities  doing  any 
of  the  things  or  subjected  to  any  liability  of  wiiich  cognizance  is 
taken  therein.     (See  arts.  35  and  52.) 

Special  tax. — ^The  term  "  special  tax  "  is  used  to  include  any  of  the 
occupational  taxes  imposed  upon  persons  manufacturing,  dealing, 
etc.,  in  narcotics. 

Stami)  tax. — The  term  "  stamp  tax  "  is  used  to  describe  the  tax  on 

narcotic  drugs  payable  by  attachment  of  stamp.     (See  arts.  64  to 

80.) 

SPECIAL  TAXES. 

Section  1.  That  on  or  before  July  1  of  each  year  every  person  who 
imports,  manufactures,  produces,  compounds,  sells,  deals  in,  dis- 
penses, or  gives  away  opium  or  coca  leaves,  or  any  compound,  manu- 
facture, salt,  derivative,  or  preparation  thereof,  shall  register  with 
the  collector  of  internal  revenue  of  the  district  his  name  or  style, 
place  of  business  and  place  or  places  where  such  business  is  to  be 
carried  on,  and  pay  the  special  taxes  hereinafter  provided; 

Every  person  who  on  January  1,  1919,  is  engaged  in  any  of  the 
activities  above  enumerated,  or  who  between  such  date  and  the  pas- 
sage of  this  act  first  engages  in  any  of  such  activities,  shall  within  30 
days  after  the  passage  of  this  act  make  like  registration,  and  shall 
pay  the  proportionate  part  of  the  tax  for  the  period  ending  June  30, 
1919;   and 

Every  person  who  first  engages  in  any  of  such  activities  after  the 
passage  of  this  act  shall  immediately  make  like  registration  and  p:iy 
the  proportionate  part  of  the  tax  for  the  period  ending  on  the  fol- 
lowing June  30th. 

19 


20  NARCOTICS. 

SCOPE  OF  THE  LAW. 

Art.  3.  Purpose  of  the  law, — The  law  is  a  revenue  measure  but  also 
serves  the  purpose  of  controlling  and  restricting  the  traffic  in  narcotic 
drugs. 

Art.  4.  Persons  liable. — Liability  attaches  to  every  person  who  im- 
ports, m.anufactures,  produces,  compounds,  sells,  deals  in,  dispenses, 
or  gives  away  opium  or  coca  leaves,  or  any  compound,  manufacture, 
salt,  derivative  or  preparation  thereof. 

For  detailed  information  with  respect  to  the  various  classes  of  per- 
sons who  are  within  the  scope  of  the  law,  see  articles  20  to  51. 

Art.  5.  The  liability. — Every  person  within  the  scope  of  the  law 
(see  art.  4)  and  whose  dealings  in  narcotic  drugs  are  not  in  viola- 
tion of  any  law.  State  or  Federal,  is  required  to  register  and  pa}'^  one 
or  more  of  the  several  special  taxes  imposed.  As  to  evidence  of  quali- 
fication under  the  local  law,  see  article  11.  As  to  manner  of  paying 
the  tax,  see  article  6. 

Persons  who  can  not  lawfully  deal  in  narcotic  drugs,  including 
consumers  as  such,  are  not  permitted  to  register.  Persons  who  deal 
in  narcotics  without  registration  are  liable  to  be  fined  not  more  than 
$2,000,  or  imprisoned  for  not  more  than  five  years,  or  both.  (See 
art.  153). 

REGISTRATION. 

Art.  6.  Manner  of  registering. — Every  person  required  to  register 
(see  arts.  4  and  5)  must  execute  a  return  or  application  for  regis- 
tration (hereinafter  referred  to  as  "return"  or  "application")  on 
Form  678,  obtainable  from,  the  collector  of  the  district  in  which  the 
taxpayer  does  business  or  practices  his  profession.  The  form,  when 
executed,  should  be  transmitted  to  the  collector,  accompanied  by  a 
remittance  of  the  amount  of  the  tax.  For  list  of  collection  districts 
with  addresses  of  collectors'  offices,  see  pages  65  to  67. 

Art.  7.  Time  of  registration. — Each  person  required  to  register  (see 
arts.  4  and  5)  must  make  return  on  or  before  July  1  of  each  year. 
Those  who  commence  business  after  July  1  are  required  to  make  re- 
turn immediately,  covering  the  unexpired  portion  of  the  tax  year  end- 
ing June  30  following  (see  art.  18),  and  on  or  before  July  1  annually 
thereafter.  With  respect  to' liability  on  account  of  failure  to  file 
return  on  time,  see  article  51. 

Art.  8.  Signatures — Individuals. — ^The  application  must  be  signed 
by  the  person  desiring  registration. 

Firms  and  cm'porations. — The  application  of  a  firm  must  be  signed 
by  a  member,  that  of  a  corporation,  by  an  officer  duly  authorized  to 
so  act. 

Institutions. — When  an  institution  is  subject  to  tax  (see  art,  35) 
the  head  thereof  or  of  the  department  Avherein  narcotic  drugs  are 
used  shall  sign  the  application  for  registration. 


NARCOTICS.  21 

Art.  9.  Information  as  to  ownership. — The  names  of  the  real  owners 
must  be  disclosed  if  a  business  is  being  carried  on  under  a  fictitious 
name  or  that  of  a  former  owner,  etc.  If  owned  by  a  partnership 
the  name  of  each  partner  must  appear.  In  the  case  of  a  corporation 
the  names  of  the  principal  officers  must  be  shown. 

Art.  10.  Oath — When  required. — If  the  amount  of  tax  covered  by 
the  return  is  more  than  $10  it  must  be  under  oath.  If  the  tax  is  not 
in  excess  of  $10  the  application  may  be  signed  or  acknowledged 
before  two  witnesses  in  lieu  of  an  oath.  The  witnesses  must  them- 
selves sign  the  application  in  their  capacity  as  such.  (See  sec.  1309, 
Revenue  Act  of  1918.) 

Art.  11.  Evidence  of  qualification. — ^The  return  must  be  supported 
by  an  affidavit  showing  the  applicant  to  be  legally  qualified  or  per- 
mitted, under  the  laws  of  the  jurisdiction  in  which  he  is  engaged,  or 
proposes  to  engage,  in  any  business  or  occupation  within  the  scope 
of  these  regulations,  to  engage  in  such  business  or  occupation.  Un- 
less the  evidence  of  qualification  is  satisfactory,  the  application  will 
be  rejected.  Anj^  person  rendering  a  false  affidavit  will  be  liable 
imder  the  provisions  of  section  3451,  Eevised  Statutes,  to  be  im- 
prisoned not  less  than  one  nor  more  than  five  years. 

Art.  12.  Inventory  required. — Every  person,  firm,  or  corporation 
making  application  for  registry,  or  reregistry  in  any  class  (see  art.  21) 
must,  at  the  time  of  applying  for  such  registry  or  reregistry,  pre- 
psLve,  under  oath  or  affirmation,  in  duplicate,  an  inventory  of  all 
narcotic  drugs  and  preparations  coming  within  the  scope  of  the  law, 
excluding  exempt  preparations  (see  arts.  139  to  148),  on  hand  on  the 
date  of  the  application.  The  inventories  must  be  prepared  on  Form 
713,  copies  of  which  may  be  obtained  from,  collectors  upon  request. 
The  original  inventory  must  be  kept  on  file  by  the  maker,  and  the 
duplicate  forwarded  to  the  collector.  Collectors  will  refuse  to  regis- 
ter any  applicant  who  fails  to  furnish  a  copy  of  the  inventory  as 
required. 

Art.  13.  Registry  numbers. — Upon  approval  of  the  application  the 
collector  will  assign  a  registry  number  to  the  applicant.  The  num- 
bers are  issued  serially  without  regard  to  classes  (see  art.  21).  The 
number  as  assigned  is  retained  by  the  applicant  so  long  as  applica- 
tions continue  to  be  made  on  or  before  July  1  of  each  year  and  ap- 
proved. Registry  numbers  will  be  reassigned  to  other  persons  when 
applications  are  no  longer  made  and  approved. 

Art.  14.  Recording-  and  filing. — Each  approved  application  (see  art. 
6)  will  be  recorded  by  the  collector  on  card  Record  10,  and  the  cards 
filed  alphabetically  (see  art.  57).  The  applications  will  be  filed 
numerically  according  to  registry  numbers,  all  those  of  the  same 
number  (see  art.  15)  being  filed  together. 


22  NAECOTICS. 

Art.  15.  Dual  liabilities. — One  who  belongs  to  more  than  one  tax- 
able class  (see  art.  21)  must  make  return  with  respect  to  each.  Ordi- 
narily, only  one  registry  number  will  be  assigned,  but  one  who  has 
qualified  as  a  member  of  class  4  must  be  assigned  a  separate  number 
with  respect  to  that  class  only,  even  though  he  is  also  registered  as  a 
member  of  class  1,  2,  or  3.  However,  when  one  has  registered  as  a 
member  of  classes  4  and  5  only,  he  will  operate  as  a  member  of  class 
5  under  the  number  assigned  to  him  as  a  member  of  class  4. 

If  one  is  engaged  in  business  or  carries  on  an  occupation  as  a  mem- 
ber of  one  class  only,  but  at  two  or  more  different  addresses,  he  must 
make  return,  and  a  separate  number  will  be  assigned,  with  respect  to 
each  place  separately.     As  to  tax  liability,  see  articles  22  and  23. 

Art.  16.  Government  officials. — Government  officials  who  handle 
narcotic  drugs  and  preparations  are  under  certain  conditions  exempt 
from  registration.     (See  art.  41.) 

NATURE  AND  MEASURE  OF  TAX. 

Art.  17.  Nature  and  manner  of  payment  of  taxes. — ^The  occupational 
taxes  are  annual  in  character  and  are  due  and  payable  on  or  before 
July  1  of  each  year,  the  tax  year  ending  June  30  of  the  following 
calendar  year.  With  respect  to  amounts,  see  article  21.  With  re- 
spect to  liabilities  of  persons  doing  business  for  part  of  the  year,  see 
article  18.  With  respect  to  the  manner  of  payment  of  taxes,  see  arti- 
cle 6. 

Art.  18.  Measure  of  tax. — ^Wlien  business  is  done  during  the  month 
of  July,  tax  must  be  paid  for  the  full  year  and  no  part  thereof  may 
be  refunded  regardless  of  whether  or  not  the  taxpayer  intends  to 
remain  or  does  remain  in  business  for  a  year.  If  business  is  com- 
menced after  the  month  of  July,  the  amount  due  is  to  be  reckoned 
proportionately  from  the  j6rst  day  of  the  month  in  which  business 
is  begun  to  July  1  following  (sec.  3237,  R.  S.).  But  see  below  as  to 
dealers  in  exempt  preparations. 

Dealers  in  exempt  frefajrations. — With  respect  to  liability  of  manu- 
facturers of  and  dealers  in  exempt  preparations,  see  article  140. 

Art.  19.  Change  of  ownership. — When  a  business  or  practice  changes 
hands  the  person  succeeding  thereto  is  liable  to  tax  as  indicated  in 
article  18  for  the  period  or  periods  during  which  he  conducts  the 
business  or  practice,  irrespective  of  any  taxes  paid  by  his  predecessor. 
The  predecessor  is  not  entitled  to  refund  of  any  tax  paid  by  him 
on  account  of  the  transfer  of  ownership.     (Sec.  3241,  R.  S.) 

With  respect  to  changes  of  ownership  through  death,  see  article  58. 


NARCOTICS. 


23 


AMOUNTS  TO  BE  PAID. 

[Section  1. — Contiuued.] 

Importers,  manufacturers,  producers  or  compounders,  $24  per  annum ; 
wholesale  dealers,  $12  per  annum ;  retail  dealers,  $6  per  annum ;  pliy- 
sicians,  dentists,  veterinary  surgeons,  and  otlier  practitioners  lawfully 
entitled  to  distribute,  dispense,  give  away,  or  administer  any  of  the 
aforesaid  drugs  to  patients  upon  whom  they  in  the  course  of  their  pro- 
fessional practice  are  in  attendance,  shall  pay  $3  per  annum. 

Every  person  who  imports,  manufactures,  compounds,  or  other- 
wise pi-oduces  for  sale  or  distribution  any  of  the  aforesaid  drugs  shall 
be  deemed  to  be  an  importer,  manufacturer,  or  producer. 

Every  person  who  sells  or  offers  for  sale  any  of  said  drugs  in  the 
original  stamped  packages,  as  hereinafter  provided,  shall  be  deemed 
a  wholesale  dealer. 

Every  person  who  sells  or  dispenses  from  original  stamped  packages, 
as  hereinafter  provided,  shall  be  deemed  a  retail  dealer. 

Art.  20.  Method  of  regulations. — In  arranging  the  matter  under  the 
heading,  "  Amounts  to  be  paid,"  the  classifications  indicated  by  the 
statute  have  been  followed.  Thus,  for  instance,  the  possibility  of 
liability  of  a  retail  druggist  to  tax  as  a  wholesale  dealer  or  as  a 
manufacturer  is  discussed  in  the  articles  dealing  with  "Wholesale 
dealers  "  and  "  Manufacturers,"  respectively,  not  in  the  article  deal- 
ing with  "  Retail  dealers."  The  latter  article  deals  only  with  ques- 
tions of  liability  to  tax  as  a  retail  dealer.  However,  certain  rules 
which  are  common  to  several  classes  of  taxpayers  have  been  added 
under  separate  heads.     (See  arts.  22  and  23,  and  34  to  38.) 

Art.  21.  Eates  of  tax. — Persons  subject  to  tax  are  divided  into 
classes  as  shown  by  the  table  below :  For  definitions,  exceptions,  ex- 
planations, etc.,  see  articles  22  to  43.  With  respect  to  manufacturers 
of  and  dealers  in  exempt  preparations,  see  articles  139  to  148. 


Annual 

tax. 

I 

$24 

II 

12 

III 

6 

IV 

3 

v 

1 

Persons  liable. 


Importers 

Manufacturers 

Producers 

Compounders 

Chemists 

Wholesale  dealers 

Retail  dealers 

Physicians,  dentists,  veterinary  surgeons,  and  other  practitioners 
Manufacturers  of  and  dealers  in  exempt  prepai'ations 


Dealt 
with  par- 
ticularly 

in 
articles. 


24 
25 
26 
25 
27 
28 
29 
30 
140 


Art.  22.  Several  different  occupations. — As  a  general  rule,  one  en- 
gaged in  several  different  businesses  or  occupations  at  one  or  sev- 
eral different  locations  is  liable  to  a  separate  tax  with  respect  to 
each  occupation  or  business  (sees.  3235  and  3236,  R.  S.).  Exceptions 
to  the  general  rule  are  indicated  by  succeeding  articles.  With 
respect  to  registration,  see  article  15. 


24  NARCOTICS. 

Art.  23.  Several  businesses  of  same  kind. — One  conducting  two  or 
more  businesses  of  the  same  kind  or  engaged  in  the  same  occupation 
at  two  or  more  different  phices  must  pay  a  separate  tax  with  respect 
to  each  place  (sees.  3235  and  323G,  li.  S.).  With  respect  to  registra- 
tion, see  article  16. 

Art.  24,  Importers. — Every  person  who  imports  coca  leaves  or  nar- 
cotic drugs  or  derivatives  or  preparations  thereof  is  subject  to  tax 
as  an  importer.  Importers  who  sell  or  otherwise  transfer  title  to 
imported  narcotic  drugs  while  in  customs  custody  without  securing 
physical  possession  thereof  are  nevertheless  subject  to  tax.  An  im- 
porter who  is  also  a  manufacturer  is  not  thereby  required  to  pay 
more  than  one  tax. 

Art.  25.  Manufacturers  and  compounders. — As  a  general  rule,  every 
person  who,  by  compounding,  mixing,  or  other  process  of  manu- 
facture, produces  narcotic  drugs  or  preparations  for  sale  is  subject 
to  tax  as  a  manufacturer  or  compounder.  There  are,  however,  a 
number  of  exceptions. 

Retail  dealers. — Persons  who  haA'^e  paid  tax  as  retail  dealers  do 
not  incur  liability  as  manufacturers  or  compounders  on  account  of 
compounding  narcotic  preparations  to  fill  legitimate  prescriptions 
previously  received.  As  to  the  requirements  with  respect  to  pre- 
scriptions, see  articles  115  to  125. 

Neither  will  additional  tax  liability  be  asserted  against  such  per- 
sons on  account  of  the  preparation  of  solutions  in  advance  of  re- 
ceipt of  prescriptions  so  long  as  they  are  used  for  prescription  pur- 
poses only. 

As  to  labeling  of  packages  containing  preparations  compounded 
to  fill  prescriptions,  see  article  125. 

Persons  qualified  only  as  retail  dealers  may  also  supply  prac- 
titioners on  order  forms  (see  arts.  100  to  114)  with  aqueous  solu- 
tions to  be  used  in  legitimate  office  practice  in  a  quantity  not  ex- 
ceeding one  ounce  at  any  one  time.  Each  package  containing  an 
aqueous  solution  so  furnished  must  bear  a  label  showing  the  date 
and  number  of  order  form,  the  name,  address,  and  registry  number 
of  the  person  furnishing  the  order,  and  the  name,  address,  and 
registry  number  of  the  dealer  filling  the  order.  As  to  exemption 
from  stamp  tax,  see  article  78. 

M armfacturers  of  exerrupt  preparations. — Persons  who  manufac- 
ture for  external  use  only  or  produce  preparations  which  contain 
only  the  small  percentage  of  narcotic  drugs  specified  in  articles  141 
to  143  are  not  required  to  pay  the  tax  of  $24  per  annum. 

Importers. — ^^\^ith  respect  to  importers  who  are  also  manufactur- 
ers, see  article  24. 


NARCOTICS.  25 

Additio7iaI  licibiUties  of  mcmufacturers. — With  respect  to  liabili- 
ties of  manufacturers  as  wholesale  and  retail  dealers,  see  articles 
28  and  29. 

Branches^  offices^  and  warehouses. — ^T\^ith  respect  to  branches, 
offices,  and  warehouses,  see  articles  31  to  33. 

Art.  26.  Producers. — A  person  who  produces  packages  containing 
narcotic  drugs  or  preparations  to  be  sold  on  order  forms  not  by 
mixing  or  compounding  but  by  merely  transferring  the  contents  of 
one  package  or  of  a  number  of  packages  to  one  or  more  packages  of 
the  same  or  of  greater  or  smaller  size,  is  liable  to  tax  as  a  producer. 
As  to  liability  to  stamp  tax,  see  article  73.  As  to  additional  liability 
as  wholesale  or  retail  dealer,  see  articles  28  and  29.  As  to  producers 
of  exempt  preparations,  see  article  140, 

Art.  27.  Chemists. — Chemists  occupying  an  independent  status  and 
not  that  of  employees,  in  other  words,  in  business  for  themselves, 
who  make  anah^ses  of  narcotic  drugs  or  preparations  or  use  such 
drugs  in  analyzing  other  things,  are  liable  to  tax  as  compoimders. 
As  to  record  to  be  kept  by  chemists,  see  article  93. 

Art.  28.  Wholesale  dealers. — Every  person  who  sells  or  offers  for 
sale  narcotic  drugs  or  preparations  in  original  stamped  packages 
(see  arts.  64  to  80)  is  subject  to  tax  as  a  wholesale  dealer. 

Manufacturers.,  etc. — A  duly  qualified  importer,  manufacturer, 
compounder,  or  producer  does  not  incur  liability  as  a  wholesale  dealer 
on  account  of  the  sale  of  original  stamped  packages  of  his  own 
importation  or  production  (sec.  3235,  E,  S.,  see  art.  53).  He  will, 
lioAvever,  be  liable  as  a  wholesale  dealer  in  case  he  sells  original 
stamped  packages  of  any  other  importer,  manufacturer,  compounder, 
or  producer. 

Art.  29.  Retail  dealers. — Every  person  who  sells  narcotic  drugs  or 
])rcparations  from  original  stamped  packages  (see  arts.  64  to  80)  is 
liable  as  a  retail  dealer. ,  With  respect  to  liability  on  account  of  sale 
of  original  stamped  packages,  see  article  28. 

Prax)titioner8. — A  duly  qualified  practitioner  (see  art.  11)  is  not 
required  to  pay  additional  tax  on  account  of  the  sale  of  narcotic 
drugs  for  legitimate  medical  purposes  to  his  own  bona  fide  patients. 
A  practitioner  who  operates  a  drug  store  and  in  his  capacity  as  a 
druggist  sells  narcotic  drugs  or  preparations,  except  exempt  prepa- 
ations  (see  arts.  139  to  148)  under  prescriptions  written  by  other 
practitioners  or  himself,  incurs  additional  liability  as  a  retail  dealer. 

Manufacturers. — One  registered  as  a  member  of  class  1  (see  art. 
21)  and  who  is  qualified  under  the  laws  of  the  jurisdiction  in  which 
his  place  of  business  is  located  to  fill  prescriptions  will  be  permitted 
to  do  so  from  original  stamped  packages  of  his  own  production 
without  payment  of  tax  as  a  retail  dealer.  If.  however,  sales  are 
140106°— 19 4 


^ 


26  nAkcotics. 

made  from  packages  produced  by  any  other  person,  additional  lia- 
bility to  tax  as  a  retail  dealer  will  be  incurred. 

Art.  30.  Practitioners. — Physicians,  dentists,  veterinary  surgeons, 
and  other  practitioners,  including  institutions  (see  art.  35),  entitled 
under  the  laws  of  the  jurisdiction  in  which  they  practice  to  distribute, 
dispense,  give  away,  or  administer  narcotic  drugs  or  preparations 
are  subject  to  the  tax  of  $3  per  annum.  Payment  of  this  tax  does 
not  entitle  the  practitioner  to  furnish  narcotic  drugs  to  persons  who 
are  not  his  bona  fide  patients.  As  to  additional  liability  incurred  on 
account  of  the  furnishing  of  narcotics  to  other  persons,  see  article  29. 

Practitioners  who  prescribe  narcotic  drugs  must  pay  the  tax  even 
though  they  do  not  keep  such  drugs  in  their  possession. 

Art.  31.  Branches. — If  a  concern  has  one  or  more  separate  branches 
where  any  of  the  various  taxable  occupations  is  carried  on,  tax  must 
be  paid  for  each  branch  separately.  (See  arts.  22  and  23.)  With 
respect  to  registration,  see  article  15. 

Art.  32.  Offices. — A  manufacturer  who  has  paid  tax  as  such,  and 
who  has  a  principal  office  or  place  of  business  separate  and  apart 
from  the  establishment  where  the  actual  manufacturing  is  done,  is 
not  required  to  pay  an  additional  tax  with  respect  to  the  office,  pro- 
vided no  merchandise  except  samples  is  kept  thereat  and  goods  of 
his  own  manufacture  only  are  sold.  If  sales  are  made  at  a  principal 
office  or  place  of  business,  separate  and  apart  from  the  manufacturing 
establishment,  from  stock  kept  at  such  office  or  place,  tax  as  a  whole- 
sale or  retail  dealer,  or  both,  as  the  case  may  be,  must  be  paid  with 
respect  to  such  office  or  place. 

Only  a  principal  office  or  place  of  business  is  within  the  exemption. 
Tax  must  be  paid  with  respect  to  any  other  places  at'Vhich  sales  are 
made  in  an}-  event. 

Art.  33.  Warehouses. — Tax  does  not  attach  with  respect  to  a  ware- 
house where  narcotic  drugs  are  stored,  provided  no  sales  are  made 
at  such  place.  If  goods  stored  in  a  warehouse  are  sold  at  some  office 
or  place  of  business  located  elsewhere,  tax  must  be  paid  with  respect 
to  such  office  or  place,  unless  the  office  or  place  is  covered  by  the  ex- 
emption indicated  in  article  32. 

Art.  34.  Partnerships. — A  partnership  is  subject  to  the  same  tax 
liability  as  an  individual  (see  arts.  2  and  52).  Should  either  of  the 
partners  be  also  individually  engaged  in  a  separate  taxable  business, 
he  will  incur  additional  liability  with  respect  to  such  business. 

Art.  35.  Institutions. — Hospitals,  colleges  of  pharmacy,  dental 
clinics,  sanatoriums  and  other  institutions  not  exempt  as  public  insti- 
tutions (see  art.  42)  are  subject  to  the  same  special  tax  liability  as 
individuals  dealing  in  or  handling  narcotic  drugs  or  preparations 
in  the  same  manner  (see  arts.  2  and  52). 


NARCOTICS.  27 

ITINERANT  VENDORS. 

[Section  1 — Continued.] 
Provided,  Tliat  tlie  office,  or  if  none,  tlie  residence,  of  any  person 
shall  be  considered  for  the  purpose  of  this  Act  his  place  of  business; 

Aet.  36.  Itinerant  vendors. — No  person  is  permitted  to  dispense  or 
deal  in  narcotic  drugs  or  preparations  except  upon  orders  received 
or  engagements  made  at  a  fixed  address.  A  peddler  of  such  dimgs 
or  preparations  will  be  regarded  as  incurring  a  separate  tax  liability 
and  committing  an  additional  offense  at  each  place  where  a  sale  is 
made.    With  respect  to  the  punishment  imposed,  see  art.  153. 

PRINCIPAL  AND  AGENT. 

[Section  1 — Continued.] 
But  no  employee  of  any  person  who  has  registei*ed  and  paid  special 
tax  as  herein  required,  acting  within  the  scope  of  his  employment,  shall 
be  required  to  register  and  pay  special  tax  provided  by  this  section ; 

Art.  37.  Principals. — Principals,  rather  than  agents,  are  liable  to 
the  taxes  imposed.  Employers  and  other  principals  will  be  regarded 
as  responsible  for  the  acts  of  employees  and  other  agents  within  the 
scope  of  their  employment,  but  see  article  38.  Any  dealing  in  nar- 
cotic drugs  or  preparations  by  an  unregistered  employee  or  agent 
will  be  presumed  to  be  within  the  scope  of  his  employment. 

Aet.  38.  Employees. — An  employee  of  a  person  who  has  registered 
and  paid  tax  will  not  himself  incur  liability  to  tax  so  long  as  he  act-s 
solely  within  the  scope  of  his  employment.  (See  art.  37.)  However, 
an  employee  who,  within  the  scope  of  his  employment,  does  any  un- 
lawful act,  will  be  held  jointly  liable  with  his  employer. 

Unregistered  employees  who  deal  in  narcotic  drugs  outside  of  the 
scope  of  their  employment  will  be  held  individually  liable  and  vigor- 
ously prosecuted,     (See  art.  153.) 

Aet.  39.  Nurses. — Nurses  are  regarded  as  agents  of  the  physicians 
or  institutions  under  whose  direction  or  supervision  their  duties  are 
performed.  (See  arts.  37  and  38.)  They  are  not  permitted  to  register 
nor  to  be  in  possession  of  narcotic  drugs  or  preparations  except  as 
agents  or  consumers.  The  issuance  of  narcotics  to  nurses  as  con- 
sumers will,  of  course,  be  subject  to  the  same  limitations  as  in  the 
case  of  any  other  consumers.  Any  unused  narcotic  drugs  left  by  a 
practitioner  with  a  nurse,  to  be  administered  during  his  absence, 
upon  discharge  of  the  nurse,  must  be  returned  to  the  practitioner, 
who  will  account  for  the  drugs  on  his  records.  (See  art.  129.)  Any 
such  narcotic  drugs  found  in  the  possession  of  a  nurse  not  at  the  time 
under  the  supervision  of  a  practitioner  shall  be  forfeited  to  the  Gov- 
ernment.    (See  art.  80.) 

Aet.  40.  Traveling  salesmen. — Traveling  salesmen  who  solicit  or- 
ders and  forward  them  to  tlieir  res^jective  principals  are  not  required 
to  register  or  pay  tax.  As  to  orders  for  exempt  preparations  secured 
by  traveling  salesmen  see  article  147. 


28  NARCOTICS. 

OFFICIALS  OF  FEDERAL,  STATE,  MUNICIPAL  GOVERNMENTS,  ETC. 

[Section  1 — Continued.] 
Provided  further,  Tliat  oflicials  of  the  United  States,  Territorial, 
District  of  Columbia,  or  insular  possessions,  State  or  municipal  gov- 
ernments, who  in  the  exercise  of  their  official  duties  engage  in  any 
of  the  business  herein  described,  shall  not  be  required  to  register,  nor 
pay  special  tax,  nor  stamp  the  aforesaid  drugs  as  hereinafter  pre- 
scribed, but  their  right  to  this  exemption  shall  be  evidenced  in  such 
manner  as  the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  may  by  regulations  prescribe. 

Art.  41.  Exempt  oiScials. — Officials  of  the  United  States,  and  of  the 
government  of  any  State,  Territory,  District  of  Columbia,  insular 
possession  of  the  United  States,  or  of  any  county  or  municipality 
therein,  who,  in  the  exercise  of  their  official  duties,  dispense  or  handle 
narcotic  drugs,  are  not  required  to  register,  nor  pay  special  tax,  nor 
stamp  packages  containing  drugs  which  they  compound  or  produce. 
As  to  evidence  of  exemption,  see  article  42.  As  to  the  procurement 
of  narcotic  drugs  by  exempt  officials,  see  article  43. 

If  one  who  is,  in  his  official  capacity,  exempt,  privately  engages 
in  business  or  practices  a  profession  in  the  course  of  which  narcotic 
drugs  or  preparations  are  dealt  in  or  dispensed,  he  will  be  liable  in 
his  private  capacity  the  same  as  a  private  person. 

Art.  42.  Evidence  of  exemption. — Each  person  claiming  exemption 
from  liability  otherwise  incurred  on  the  ground  that  he  is  a  Govern- 
ment official  (see  art.  41)  must  file  with  the  collector  of  internal 
revenue  of  the  district  in  which  he  is  located  satisfactory  credentials 
from  such  Government  or  department  or  branch  thereof,  in  the 
form  of  a  statement  from  a  superior  official  of  the  Government 
or  department  or  branch  thereof  certifying  that  the  person  claiming 
the  exemption  is  a  duly  accredited  official  of  such  Government,  which 
credentials  must  be  renewed  on  or  before  July  1  of  each  year. 

Art.  43.  Procurement  of  drugs. — Before  procuring  narcotic  drugs 
taxable  under  the  act,  it  will  be  necessaiy  for  an  exempt  official  (see 
art.  41)  to  forward  to  the  collector  of  the  district  with  whom  the  cre- 
dentials prescribed  by  article  42  have  been  filed,  a  copy  of  the  con- 
templated order,  with  request  for  a  certificate  of  exemption,  which 

certificate  will  be  furnished  by  the  collector  to  the  official  and  must 
be  forwarded  by  such  official  with  the  original  order,  to  the  manu- 
facturer or  dealer  to  whom  the  order  is  given. 

The  following  form  wall  be  used  by  collectors  for  the  certificate 
above  required: 


(Name  of  official.)  (Official  capacity.) 

has  filed  witli  this  office  proper  credentials  establishing  his  exemption  from 
special  tax  under  the  act  of  December  17,  1914,  as  amended  by  the  Revenue  Act 
of  3918,  and  is  entitled  to  purchase  narcotics  covered  oy  attached  order  with- 
out use  of  official  order  forms. 


NARCOTICS.  29 

Exception. — Special  agents  and  customs  agents,  for  the  establish- 
ment of  drawback  under  customs  laws  and  regulations  and  inspectors 
of  the  Bureau  of  Chemistry,  Department  of  Agi-iculture,  in  connec- 
tion with  their  duties  in  enforcing  the  Food  and  Drugs  Act  are  en- 
titled to  procure  from  importers,  manufacturers,  wholesale  dealers, 
or  retail  dealers,  as  the  case  may  be,  samples  of  narcotic  drugs  or 
preparations,  and  such  importers,  manufacturers,  wholesale  dealers, 
or  retail  dealers  may  lawfully  furnish  to  any  duly  accredited  special 
agent  or  customs  agent  of  the  Treasury  Department  or  inspector  of 
the  Bureau  of  Chemistry,  Department  of  Agriculture,  the  required 
samples,  taking  the  receipt  of  such  officer  therefor,  which  will  be  filed 
with  their  official  narcotic  order  forms  and  records.  Appropriate 
notation  must  be  made  of  such  transactions  in  the  monthly  returns 
of  members  of  classes  1  and  2. 

If  an  official  is  engaged  in  a  private  business  or  privately  practices 
a  profession  in  which  narcotic  drugs  or  preparations  are  sold,  dis- 
pensed, given  away,  or  prescribed,  the  drugs  for  such  purposes  must 
be  secured  upon  regular  order  forms.     (See  arts.  100  to  114.) 

Art.  44.  Prescriptions  and  orders. — When  an  exempt  person  pre- 
scribes or  orders  in  his  official  capacity,  narcotic  drugs  or  nonexempt 
preparations,  the  prescription  or  order  should  be  written  on  an  offi- 
cial blank,  if  such  blanks  are  provided  by  the  department  of  which 
he  is  an  official.  If  special  blanks  are  not  provided  official  stationery 
must  be  used.  The  prescriptions  and  orders  must  show  the  name  and 
title  of  the  official  by  whom  they  are  executed. 

Art.  45.  Filling  orders  and  prescriptions. — Dealers  who  supply  nar- 
cotic drugs  to  fill  prescriptions  or  orders  of  exempt  officials  should 
insist  upon  the  execution  of  such  orders  and  prescriptions  in  the 
manner  indicated  in  article  44.  They  should  file  such  orders  and  pre- 
scriptions with  the  regular  narcotic  orders  and  prescriptions  required 
under  the  provisions  of  the  Act.     (See  arts.  100  to  125.) 

Art.  46.  Records. — Exempt  officials  must  keep  accurate  records  of 
the  amounts  and  quantities  of  narcotic  drugs  and  preparations  pur- 
chased and  dispensed,  and  have  such  records  available  for  inspection 
by  internal  revenue  officers. 

Art.  47.  Caution  required. — Great  care  should  be  exercised  by  such 
exempt  officials  to  prevent  the  narcotic  drugs  obtained  or  pres^-ribed 
by  them  from  falling  into  the  hands  of  unauthorized  persons  and 
to  see  that  they  are  used  only  for  legitimate  purposes. 

Art.  48.  Stamp  tax. — With  respect  to  the  exemption  of  Government 
officials  from  stamp  tax,  see  article  77. 

GOVERNMENT  INSTITUTIONS. 

Art.  49.  Government  institutions. — Hospitals  and  other  institutions 
and  oi'ganizations  operated  by  the  Government  of  the  United  States, 


30  NARCOTICS. 

or  of  a  State,  county,  or  municipality  are  exempt  from  tax.  Institu- 
tions wliich  are  not  actually  operated  by  such  a  Government  are  not 
exempt  because  of  receiving  financial  contributions  or  support  there- 
from, but  must  comply  with  the  requirements  of  the  statutes  the 
same  as  any  other  private  institutions.     (See  arts.  2,  35,  and  52.) 

Art.  50.  Railroad  companies  under  Federal  control.— A  railroad  com- 
pany, though  under  Federal  control,  is  not  exempt,  and  whenever  it, 
through  physicians,  pharmacists,  etc.,  in  its  employment,  sells  or  dis- 
penses original  stamped  packages  of  narcotics  or  sells  or  dispenses 
such  drugs  from  original  stamped  packages,  it  is  required  to  register 
and  pay  tax  and  conform  to  the  other  requirements  of  the  law. 

VIOLATIONS  OF  LAW. 

[Section  1 — Continued.] 

It  shall  be  unlawful  for  any  person  required  to  register  under  the 
provisions  of  this  Act  to  import,  manufacture,  produce,  compound,  sell, 
deal  in,  dispense,  distribute,  administer,  or  give  away  any  of  the  afore- 
said drugs  without  having  registered  and  paid  the  special  tax  as  im-    ■ 
posed  by  this  section. 

Art.  51.  Violations. — Persons  who,  being  required  to  register  and 
pay  tax,  fail  to  do  so,  are  liable  to  be  fined  not  more  than  $2,000  or 
imprisoned  not  more  than  five  years,  or  both.  (See  art.  153.)  With 
respect  to  the  liability  under  section  3176,  Revised  Statutes,  see  ar- 
ticle 54.  For  information  as  to  who  are  required  to  register  and  to 
pay  tax,  see  articles  4,  5,  and  21,  and  references  therein. 

DEFINITION. 

[Section  1— Continued.] 

That  the  word  "  person  "  as  used  in  this  Act  shall  be  construed  to 
mean  .and  include  a  partnership,  association,  company,  or  corporation, 
as  well  as  a  natural  person. 

Art.  52.  Definition. — For  definition  of  "  person  "  see  article  1. 

General  Provisions  of  Law. 

[Section  1 —Continued.] 
All  provisions  of  existing  law  relating  to  special   taxes,  as  far  as 
necessary,  are  hereby  extended  and  made  applicable  to  this  section. 

Art.  53.  Provisions  applicable. — Among  the  general  provisions  of 

law  made  applicable  are  sections  of  the  Revised  Statutes,  3176,  3235, 

3238,  3239,  3240,  and  3241.    Section  3235  reads  as  follows : 

The  payment  of  the  special  tax  imposed  shall  not  exempt  from  an 
additional  special  tax  the  person  carrying  on  a  trade  or  business  in  any 
other  place  than  that  stated  in  the  collector's  register;  but  nothing 
herein  contained  shall  require  a  special  tax  for  the  storage  of  goods, 
wares,  or  merchandise  in  other  places  than  the  place  of  business,  nor, 
except  as  hereinafter  provided,  for  the  sale  by  manufacturers  or  pro- 
ducers of  their  own  goods,  wares,  and  merchandise,  at  the  place  of  pro- 
duction or  manufacture,  and  at  their  principal  office  or  place  of  business, 
provided  no  goods,  wares,  or  merchandise  shall  be  kept  except  as 
samples  at  said  office  or  place  of  business. 


NAECOTICS.  31 

Reference  to  this  section  has  been  made  in  articles  22  and  23.  The 
other  sections  referred  to  are  dealt  with  in  articles  54:  to  63.  See 
also  article  150. 

DELINQUENCY  IN  FILING  RETURNS. 

Sec.  3176  [R.  S.].  If  any  person,  corporation,  company  or  associa- 
tion fails  to  make  and  file  a  return  or  list  at  the  time  prescribed  by 
law  or  by  regulation  made  under  authority  of  law,  or  makes,  willfully 
or  otherwise,  a  false  or  fraudulent  return  or  list,  the  collector  or  deputy 
collector  shall  make  the  return  or  list  from  his  own  knowledge  and 
from  such  information  as  he  can  obtain  through  testimony  or  other- 
wise. In  any  such  case  the  Commissioner  may,  from  his  own  knowledge 
and  from  such  information  as  he  can  obtain  through  testimony  or  other- 
wise, make  a  return  or  amend  any  return  made  by  a  collector  or  deputy 
collector.  Any  return  or  list  so  made  and  subscribed  by  the  Commis- 
sioner or  by  a  collector  or  deputy  collector  and  approved  by  the  Com- 
missioner, shall  be  prima  facie  good  and  sufficient  for  all  legal  purposes. 

If  the  failure  to  file  a  return  or  list  is  due  to  sickness  or  absence,  the 
collector  may  allow  such  further  time,  not  exceeding  thirty  days,  for 
making  and  filing  the  return  or  list  as  he  deems  proper. 

The  Commissioner  of  Internal  Revenue  shall  determine  and  assess 
all  taxes,  other  than  stamp  taxes,  as  to  which  returns  or  lists  are  so 
made  under  the  provisions  of  this  section.  In  case  of  any  failure  to 
make  and  file  a  return  or  list  within  the  time  prescribed  by  law,  or  pre- 
scribed by  the  Commissioner  of  Internal  Revenue  or  the  collector  in 
pursuance  of  law,  the  Commissioner  of  Internal  Revenue  shall  add  to 
the  tax  25  per  centum  of  its  amount,  except  that  when  a  return  is  filed 
after  such  time  and  it  is  shown  that  the  failure  to  file  it  was  due  to  a 
reasonable  cause  and  not  to  willful  neglect,  no  such  addition  shall  be 
made  to  the  tax.  In  case  a  false  or  fi-audulent  return  or  li.st  is  willfully 
made,  the  Commissioner  of  Internal  Revenue  shall  add  to  the  tax  50  per 
centum  of  its  amount. 

The  amount  so  added  to  any  tax  shall  be  collected  at  the  same  time 
and  in  the  same  manner  and  as  part  of  the  tax  unless  the  tax  has  been 
paid  before  the  discovery  of  the  neglect,  falsity,  or  fraud,  in  which  case 
the  amount  so  added  shall  be  collected  in  the  same  manner  as  the  tax. 

Art.  54,  When  penalty  accrues. — A  person  required  to  pay  a  spe- 
cial or  occupational  tax  is  not  generally  held  liable  to  penalty,  so  long 
as  a  return  is  filed  within  the  month  in  which  the  liability  begins. 
The  same  rule  will  apply  to  the  original  return  required  to  be  made 
when  a  person  first  engages  in  a  business  or  occupation  subject  to  tax 
under  these  regulations.  In  view  of  the  positive  language  of  section 
1  of  the  act  of  December  17,  1914,  as  amended,  however,  all  succeed- 
ing returns  will  be  regarded  as  delinquent,  and  the  25  per  cent  penalty 
applicable,  unless  such  returns  are  filed  not  later  than  July  1  of  each 
year.     (See  art.  7.) 

STAMPS. 

Sec.  3238  [R.  S.].  All  special  tuxes  imposed  by  law,  including  the  tax 
on  stills  or  worms,  shall  be  paid  by  stamps  denoting  the  tax,  and  the 


32  NARCOTICS. 

Commissioner  of  Internal  Revenue  is  required  to  procure  appropriate 
stamps  for  the  payment  of  such  taxes ;  and  the  provisions  of  sections 
thirty-three  hundred  and  twelve  and  thirty-four  hundred  and  forty- 
six,  and  all  other  provisions  of  law  relating  to  the  prepara- 
tion and  issue  of  stamps  for  distilled  spirits,  fermented  liquors,  tobacco, 
and  cigars,  shall,  so  far  as  applicable,  extend  to  and  include  such 
stamps  for  special  taxes;  and  the  Commissioner  of  Internal  Revenue 
shall  have  autliority  to  make  all  needful  regulations  relative  thereto. 

Art.  55.  Stamps. — Stamps  covering  special  taxes  paid  by  dealers 
in  narcotics  (see  art.  21)  are  furnished  to  collectors  in  two  forms, 
with  and  without  coupons.  The  stamps  without  coupons  are  for  use 
in  those  cases  where  taxes  are  paid  for  a  full  year  and  no  penalty  on 
account  of  failure  to  make  return  in  time  is  incurred.  As  to  when 
penalty  accrues,  see  article  54.  The  coupon  stamps  are  for  use  when 
tax  is  paid  for  a  portion  of  a  year  only,  or  penalty  is  incurred. 

Stamps  without  coupons  only  are  issued  to  cover  taxes  paid  by 
persons  registered  in  class  5  (see  art.  21),  since  such  persons  are 
required  to  pay  the  full  tax,  even  when  the  period  covered  thereby 
is  less  than  a  year  (see  art.  140). 

Collectors  will  distinctly  write  or  print  the  taxpayer's  name,  ad- 
dress, and  registry  number  (see  art.  13),  and  the  number  or  numbers 
of  the  class  or  classes  to  which  he  belongs  (see  art.  21)  on  the  stamp 
before  it  is  issued. 

POSTING  OF  STAMPS. 

Sec.  3239  [R.  S.].  Every  person  engaged  in  any  business,  avocation, 
or  employment,  who  is  thereby  made  liable  to  a  special  tax,  .shall  place 
and  keep  conspicuously  in  his  establishment  or  place  of  business  all 
stamps  denoting  the  payment  of  said  special  tax ;  and  any  person  who 
shall,  through  negligence,  fail  to  so  place  and  keep  said  stamps,  shall 
be  liable  to  a  penalty  equal  to  the  special  tax,  for  which  his  business 
rendered  him  liable,  and  the  costs  of  iiros(K'ution ;  but  in  no  case  shall 
said  penalty  be  less  than  ten  dollars.  And  where  the  failure  to  comply 
with  the  foregoing  provision  of  law  shall  be  through  willful  neglect 
or  refusal,  then  the  penalty  shall  be  double  the  amount  above  pre- 
scribed. 

Provided,  That  nothing  in  tliis  section  shall  in  any  way  affect  the 
liability  of  any  person  for  exercising  or  carrying  on  any  trade,  busi- 
ness, or  profession,  or  doing  any  act  for  the  exercising,  carrying  on,  or 
doing  of  which  a  special  tax  is  imposed  by  law,  without  the  payment 
thereof. 

Art.  56.  Posting  of  stamps. — The  stamp  must  be  posted  in  a  con- 
spicuous position  in  the  taxpayer's  office,  if  he  has  one,  otherwise  in 
the  place  where  his  business  or  occupation  is  carried  on. 

LIST  OF  TAXPAYERS. 

Sec.  3240.  [R.  S.].  Each  collector  of  internal  revenue  shall,  under 
regulations  of  the  Commissioner  of  Internal  Reveniie,  place  and  keep 
conspicuously  in  his  office,  for  public  inspection,  an  alphabetical  list 


NAECOTICS.  33 

of  the  names  of  all  persons  who  shall  have  paid  special  taxes  within 
his  district,  and  shall  state  thereon  the  time,  place,  and  business  for 
which  such  special  taxes  have  been  paid,  and  upon  application  of  any 
prosecuting  officer  of  any  State,  county,  or  municipality  he  shall 
furnish  a  certified  copy  thereof,  as  of  a  public  record,  for  which  a 
fee  of  one  dollar  for  each  one  hundred  words  or  fraction  thereof  in 
the  copy  or  copies  so  requested  may  be  charged. 

Art.  57.  List  of  taxpayers. — Section  3240,  Revised  Statutes,  is  ap- 
plicable to  persons  subject  to  tax  on  account  of  manufacturing,  deal- 
ing in,  or  dispensing  narcotic  drugs  or  preparatior^,  etc.  The  record 
in  wliicli  the  required  list  of  names  is  kept  is  known  as  Eecord  10. 
(See  art.  K.) 

CHANGES  OF  OWNERSHIP. 

Sec.  3241  [R.  S.].  When  any  person  who  has  paid  the  special  tax 
for  any  trade  or  business  dies,  his  wife  or  child,  or  executors  or  ad- 
ministrators or  other  legal  representatives,  may  occupy  the  house  or 
premises,  and  in  like  manner  carry  on,  for  the  residue  of  the  term 
for  which  the  tax  is  paid,  the  same  trade  or  business  as  the  deceased 
before  carried  on,  in  the  same  house,  and  upon  the  same  premises, 
without  the  payment  of  any  additional  tax.  And  when  any  person  re- 
moves from  the  house  or  premises  for  which  any  trade  or  business  was 
taxed  to  any  other  place,  he  may  carry  on  the  trade  or  business  spe- 
cified in  the  collector's  register  at  the  place  to  which  he  removes, 
without  the  payment  of  any  additional  tax : 

Provided,  That  all  cases  of  death,  change,  or  removal,  as  aforesaid, 
with  the  name  of  the  successor  to  any  person  deceased,  or  of  the 
person  making  such  change  or  removal  shall  be  registered  with  the 
collector,  under  regulations  to  be  prescribed  by  the  Commissioner  of  In- 
ternal Revenue. 

Art.  58.  Change  of  ownership  through  death. — Whenever  one  who 
has  paid  tax  dies,  his  wife  or  child  or  executors  or  administrators 
or  other  legal  representatives,  if  legally  qualified  to  engage  in  the 
business  or  occupation  for  which  tax  is  paid,  may  cryvj  on  such 
business  or  occupation  for  the  residue  of  the  term  for  which  tax  has 
been  paid  without  any  additional  payment. 

The  successors  of  the  deceased  taxpayer  must,  however,  furnish 
evidence  of  qualification  as  required  by  article  11  and  file  Form  678, 
executed  under  oath,  or  otherwise,  in  accordance  with  article  10.  The 
form  thus  executed  must  show  the  name  of  the  original  taxpayer  and 
the  names  of  the  successors  and  their  residences,  together  with  all 
other  data  indicated  by  the  form.  As  to  liability  in  case  of  failure 
to  report,  see  article  62. 

Changes  of  ownership  from  other  causes. — For  the  rule  with  respect 
to  change-s  of  ownership  due  to  causes  other  than  death,  see  article  19. 
140106°— 19 5 


34  NAKCOTICS. 

CHANGE  OF  ADDRESS. 

Ajrt.  59.  Procedure  by  taxpayer. — Wlienever  a  special  taxpayer  re- 
moves his  business  from  the  place  specified  in  his  last  return,  on 
Form  678  (see  art.  7),  and  stated  in  his  special  tax  stamp  (see 
art  55),  to  another  address,  he  should,  not  later  than  the  month 
in  which  the  removal  occurs,  register  the  fact  by  filing  with  the 
collector  of  the  district  within  which  the  old  place  of  business 
is  located,  an  additional  Form  GTS,  executed  under  oath  or  other- 
wise, US  required  by  article  10,  and  wdth  such  modification  of  the 
printed  matter  as  is  necessary,  setting  forth  the  time  and  place 
where  he  intends  to  engage  in  the  business  described.  The  infor- 
mation with  respect  to  ownership  required  by  article  9  must  appear. 
As  to  liability  in  case  of  failure  to  duly  report  a  cltange  of  address, 
see  article  62. 

Aet.  60.  Procedure  by  collector — ^Kemoval  witbin  district — When 
registration  is  made  by  a  special  taxpayer  in  the  manner  indicated 
by  article  59,  of  the  fact  of  the  removal  of  his  business  to  another 
place  in  the  same  district,  the  collector  will  enter  in  his  alphabetical 
list  (record  10,  see  arts.' 14  and  57)  opposite  the  name  of  the  special 
taxpayer,  the  place  to  wdiich  such  removal  is  made  and  the  date  of 
the  removal.  The  same  information  shall  also  be  entered  clearly  on 
the  face  of  the  special  tax  stamp. 

Aet.  61.  Procedure  by  collector— B-emoval  to  another  district. — When 
the  removal  is  to  another  collection  district,  the  collector  will  note 
the  transfer  on  his  alphabetical  list,  stating  clearly  the  location 
where  the  business  is  to  be  carried  on,  and  shall  also  state  the  same 
on  the  face  of  the  stamp  and  then  transmit  the  stamp  to  the  col- 
lector of  the  district  to  which  said  business  is  removed,  who  shall 
enter  the  name,  business,  and  place  of  business  of  the  taxpayer  in 
his  alphabetical  list  in  the  same  manner  as  he  is  required  to  enter 
the  names,  places,  and  businesses  of  taxpayers  who  pay  their  taxes 
in  his  district  (see  art.  60) ,  and  shall  then  transmit  the  special  tax 
stamp  to  the  taxpayer. 

Art.  62.  Failure  to  report  liability. — Any  person  succeeding  to  and 
carrying  on  a  business  for  which  special  tax  has  been  paid  by  a  de- 
ceased j)erson,  and  any  person  removing  to  and  carrying  on  a  business 
with  respect  to  which  he  has  himself  paid  tax  at  a  place  othei*  than 
that  for  which  the  tax  was  paid,  without  registering  such  change  or 
removal,  will  be  regarded  as  liable  to  additional  tax  and  as  having 
carried  on  business  in  violation  of  section  3176,  Eevised  Statutes,  and 
subject  to  the  penalty  therein  prescribed  for  failure  to  make  return. 
(See  arts.  19  and  54.) 

Art.  63.  Certificates  in  lieu  of  stamps  lost  or  destroyed. — These  regu- 
lations shall  apply  to  certificates  on  Form  7541,  issued  in  lieu  of 
special-tax  stamps  lost  or  destroyed. 


NAKCOTICS.  35 

STAMP  TAX. 

[Section  1 — Continued.] 

That  there  shall  be  levied,  assessed,  collected,  and  paid  upon  opium, 
coca  leaves,  any  compound,  salt,  derivative,  or  preparation  thereof, 
produced  in  or  imported  into  the  United  States,  and  sold,  or  removed 
for  consumption  or  sale,  an  internal-revenue  tax  at  the  rate  of  1  cent 
per  ounce,  and  any  fraction  of  an  ounce  in  a  package  shall  be  taxed 
as  an  ounce,  such  tax  to  be  paid  by  the  importer,  manufacturer,  pro- 
ducer, or  compounder  thereof,  and  to  be  represented  by  appropriate 
stamps,  to  be  provided  by  the  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury;  and  the  stamps  herein 
provided  shall  be  so  affixed  to  the  bottle  or  other  container  as  to  se- 
curely seal  the  stopper,  covering,  or  wrapper  thereof. 

The  tax  imposed  by  this  section  shall  be  in  addition  to  any  import 
duty  imposed  on  the  aforesaid  drugs. 

It  shall  be  unlawful  for  any  person  to  purchase,  sell,  dispense,  or 
distribute  any  of  the  aforesaid  drugs  except  in  the  original  stamped 
package  or  from  the  original  stamped  package;  and  the  absence  of 
appropriate  tax-paid  stamps  from  any  of  the  aforesaid  drugs  shall  be 
prima  facie  evidence  of  a  violation  of  this  section  by  the  person  in 
whose  possession  same  may  be  found ;  and  the  possession  of  any 
original  stamped  package  containing  any.  of  the  aforesaid  drugs  by 
any  person  who  has  not  registered  and  paid  special  taxes  as  required 
by  this  section  shall  be  prima  facie  evidence  of  liability  to  such  spe- 
cial tax :  Provided,  That  the  provisions  of  this  paragraph  shall  not 
apply  to  any  person  having  in  his  or  her  possession  any  of  the  afore- 
said drugs  which  have  been  obtained  from  a  registered  dealer  in  pur- 
suance of  a  prescription,  written^  for  legitimate  medical  uses,  issued 
by  a  physician,  dentist,  veterinary  surgeon,  or  other  practitioner  reg- 
istered under  this  Act ;  and  where  the  bottle  or  other  container  in 
which  such  drug  may  be  put  up  by  the  dealer  upon  said  prescription 
bears  the  name  and  registry  number  of  the  druggist,  serial  number 
of  prescription,  name  and  address  of  the  patient,  and  name,  address, 
and  registry  number  of  the  person  writing  said  prescription ;  or  to 
the  dispensing,  or  administration,  or  giving  away  of  any  of  the  afore- 
said drugs  to  a  patient  by  a  registered  physician,  dentist,  veterinary 
surgeon,  or  other  practictioner  in  the  course  of  his  professional  prac- 
tice, and  where  said  drugs  are  dispensed  or  administered  to  the  patient 
for  legitimate  medical  purposes,  and  the  record  kept  as  required  by 
this  Act  of  the  drugs  so  dispensed,  administered,  distributed,  or  given 
away. 

GENERAL. 

Art.  64,  Scope  of  law. — The  law  imposes  an  excise  tax  on  opium, 
and  coca  leaves,  and  compounds,  salts,  derivatives,  and  preparations 
thereof.  All  preparations  containing  narcotic  drugs  except  those 
within  the  exemption  indicated  by  articles  139  to  148  are  subject  to 
the  tax. 

The  tax  nmst  be  paid  with  respect  to  all  goods  of  taxable  character 
removed  from  customs  custody  or  from  the  place  of  domestic  manu-  ' 
facture  on  or  after  February  25,  1919. 


36  NARCOTICS. 

A-RT.  65.  Who  is  liable. — The  tax  on  imported  goods  is  to  be  paid  by 
the  importer.  The  tax  on  domestic  goods  is  payable  by  the  domestic 
manufacturer,  compounder,  or  producer. 

Art.  CG.  Measure  of  tax. — The  tax  is  1  cent  per  ounce  or  fraction 
thereof  in  a  package.  For  instance,  a  package  containing  5^  ounces 
will  be  subject  to  a  tax  of  6  cents.  A  package  containing  less  than 
1  ounce  will  be  subject  to  a  tax  of  1  cent. 

The  tax  is  measured  by  the  entire  contents  of  a  package  or  con- 
tainer, not  by  the  weight  of  the  narcotic  contained  in  the  prepara- 
tion. 

Akt.  67.  Manner  of  payment. — The  tax  is  paid  by  attachment  of 
stamps  to  the  package  forming  the  unit  of  tax  (see  art.  08).  One 
stamp  is  to  be  affixed  so  as  to  securely  seal  the  stopper,  covering,  or 
wrapper,  but  see  article  70. 

Aet.  68.  Unit  of  tax. — ^With  the  exception  noted  below,  the  unit  of 
tax  is  the  smallest  individual  package  or  container.  Thus,  if  a  manu- 
facturer sells  a  preparation  in  packages  containing  one-tenth  of  an 
ounce  each  and  puts  10  such  packages  into  a,  larger  container,  it  is 
not  sufficient  to  place  a  stamp  of  the  denomination  of  1  cent  on  the 
larger  container,  but  each  of  the  smaller  packages  must  be  sepa- 
rately stamped. 

Am.'poules. — When  ampoules  each  containing  only  a  single  dose  are 
put  up  for  the  retail  trade  in  packages  holding  not  more  than  12 
ampoules,  tax  may  be  paid  on  the  joint  contents  of  the  entire  num- 
ber of  ampoules  by  affixing  a  stamp  or  stamps  to  the  outside  package 
or  container. 

Art.  69.  Time  of  payment. — The  tax  must  be  paid  by  attachment 
of  stamps  before  the  goods  are  withdrawn  from  customs  custody  or 
from  the  place  of  domestic  manufacture. 

Art.  70.  Kinds  of  stamps. — Adhesive  strip  stamps  are  issued  in  four 
different  sizes:  1^  by  \  inches,  2^  by  f  inches,  4  by  -^  inches,  and  6 
by  I  inches.  The  denomination  is  1  cent.  Overprinted  documentary 
stamps  of  the  denominations  of  1  cent,  2  cents,  4  cents,  10  cents,  25 
cents,  and  $1  are  also  furnished.  A  strip  stamp  must  be  used  to  seal 
the  package  as  indicated  in  article  67.  Any  tax  additional  to  that 
represented  by  the  stamp  used  to  seal  the  package  is  to  be  paid  by  at- 
tachment of  one  or  more  overprinted  documentary  stamps  of  the 
appropriate  denomination  or  denominations  to  the  side  or  bottom  of 
the  package. 

As  to  cancellation  of  stamps,  see  article  79. 

Original  stamps  of  the  required  denominations  will  be  issued  as 
soon  as  they  can  be  procured,  and  will  render  the  use  of  overprinted 
stamps  unnecessary. 

Art.  71.  Procurement  of  stamps. — Stamps  will  be  furnished  on  requi- 
sition of  persons  registered  in  class  1.     (See  art.  21.)     The  stamps  will 


NAECOTICS.  37 

be  issued  to  no  other  persons,  and  are  not  transferable.  The  requi- 
sitions will  be  made  on  Form  786.  Blank  requisition  forms  may  be 
procured  from  collectors.  Collectors  will  preserve  the  requisitions 
and  keep  a  record  of  the  total  quantity  of  stamps  secured  by  each 
person  from  whom  requisitions  are  received. 

Art.  72.  Remanufacture. — A  new  tax  liability  will  attach  whenever 
a  new  derivative,  compound,  or  preparation  is  produced,  regardless 
of  whether  or  not  tax  has  been  paid  on  the  component  ingredients 
or  part  thereof.  Thus,  opium  is  subject  to  tax  when  imported. 
Morphine  derived  from  such  opium  will  be  subject  to  additional  tax. 
A  preparation  manufactured  by  the  use  of  such  morphine  will  be 
subject  to  a  third  tax,  and  so  on. 

Art.  73.  Repacking. — If  a  preparation  upon  which  tax  has  been 
paid  is  taken  from  the  stamped  containers  and  placed  in  new  pack- 
ages, such  new  packages  must  be  stamped  as  though  an  entirely  new 
preparation  had  been  produced.     (See  arts.  26  and  69.) 

Art.  74.  Exports. — Narcotic  drugs  or  preparations  manufactured  in 
this  country  which  are  subsequently  exported  are  subject  to  tax 
whether  manufactured  expressly  for  export  or  not,  there  being  no 
provision  for  exportation  of  narcotics  free  of  tax. 

Art.  75.  Marking  containers. — Each  original  stamped  package  con- 
taining a  narcotic  drug  unmixed  with  other  ingredients  must  show 
the  name  or  kind  of  the  narcotic  drug  contained  therein,  and  that  it  is 
not  mixed  with  any  other  ingredient.  If  the  narcotic  drug  is  mixed 
with  some  other  ingredient  or  ingredients  the  quantity  of  narcotic 
to  the  ounce  must  be  shown.  If  the  preparation  contains  more  than 
one  kind  of  narcotic,  the  name  and  quantity  of  each  to  the  ounce 
must  be  indicated.  If  the  drug  or  preparation  is  in  tablet,  pill, 
ampoule,  or  suppository  form,  the  quantity  in  each  unit  may  be 
given.  If  such  information  is  given  it  will  not  be  necessary,  so  far 
as  the  narcotic  statute  is  concerned,  for  the  entire  net  weight  of 
the  contents  to  be  shown.  The  packages  and  their  contents  will, 
however,  be  subject  to  the  provisions  of  the  Food  and  Drugs  Act 
and  regulations  issued  thereunder. 

EXEMPTIONS. 

Art.  76.  Exempt  preparations. — With  respect  to  preparations  con- 
taining minute  quantities  of  narcotics,  and  liniments  or  ointments 
for  external  use  which  are  exempt  from  tax,  see  articles  139  to  148. 

Art.  77.  Government  officials. — Officials  of  the  Government  of  the 
United  States  and  other  Governments,  shown  by  articles  41  to  48  to 
be  exempt  from  special  tax,  and  who  have  complied  with  the  require- 
ments indicated  therein  are  permitted  to  manufacture  and  produce 
narcotic  drugs  and  preparations  without  payment  of  tax  thereon. 
However,  if  such  drugs  or  preparations  leave  the  possession  of  the 


38  NARCOTICS. 

producer,  they  should  be   siiitabl}'   labeled  to   show   their   exempt 
character. 

Akt.  78.  Prescriptions  and  solutions  for  practitioners. — lietail  drug- 
gists may,  under  the  conditions  indicated  by  article  25,  under  head 
of  "  Retail  dealers  "  fill  prescriptions  and  supply  solutions  for  office 
practice  without  attachment  of  stamps.  As  to  requirements  in  regard 
to  prescriptions,  see  also  articles  115  to  125. 

CANCELLATION  OF  STAMPS. 

[Section  1 — Continued.] 
And  all  tlie  pi-ovisions  of  existing  laws  relating  to  the  engraving, 
issuance,  sale,  accountability,  cancellation,  and  destruction  of  tax-paid 
stamps  provided  for  in  the  internal  revenue  laws  are,  in  so  far  as  neces- 
sary, hereby  extended  and  made  to  apply  to  stamps  provided  by  this 
section. 

Apt.  T9.  Cancellation  of  stamps. — Stamps  will  be  canceled  by  noting 

thereon  in  red  or  black  ink  the  registry  number  (see  art.  13)  of  the 

person  affixing  the  same  and  the  date  of  cancellation,  or  the  same 

data  may  be  shown  by  perforation  of  the  stamps. 

FORFEITURE. 

[Section  1 — Continued.] 
That  all  unstamped  packages  of  the  aforesaid  drugs  found  in  the 
possession  of  any  person,  except  as  herein  provided,  shall  be  subject  to 
seizure  and  forfeiture,  and  all  the  provisions  of  existing  internal  reve- 
nue laws  relating  to  searches,  seizures,  and  forfeitures  of  unstamped 
articles  are  hereby  extended  to  and  made  to  apply  to  the  articles  taxed 
under  this  Act  and  the  persons  upon  whom  these  taxes  are  imposed. 

Art.  80.  Forfeiture  of  unstamped  packages. — All  packages  containing 
narcotic  drugs  or  preparations  subject  to  stamp  tax  withdrawn  from 
customs  custody  or  from  the  place  of  domestic  manufacture  for  con- 
sumption or  use,  after  February  24,  1919,  unstamped,  are  subject  to 
seizure  and  forfeiture.     (See  arts.  64  and  C9,  also  art.  154.) 

Narcotic  drugs  and  compounds  produced  under  the  conditions  in- 
dicated by  articles  76  to  78  may  be  withdrawn  unstamped  without 
becoming  subject  to  forfeiture. 

MONTHLY  REPORTS. 

[Section  1 — Continued.] 
Importers,  manufacturers,  and  wholesale  dealers  shall  keep  such 
books  and  records  and  render  such  monthly  returns  in  relation  to  the 
transactions  in  the  aforesaid  drugs  as  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury,  may  by 
regulations  require. 

IMPORTERS,  MANUFACTURERS,  ETC. 

Art.  81,  General. — Manufacturers,  importers,  compounders  and 
producers  (see  art.  21)  will  render  monthly  returns,  under  oath,  in 
duplicate,  to  the  collector  of  internal  revenue  on  the  first  day  of 


NARCOTICS.  ,  39 

each  month  succeeding  that  for  which  rendered  or  within  15  days 
thereafter.  One  copy  of  each  return  will  be  forwarded  by  the  col- 
lector to  the  Commissioner  of  Internal  Revenue.  The  returns  will 
be  made  on  Forms  810,  810a,  and  810b.  They  may  be  prepared  in 
triplicate  and  one  copy,  properly  bound,  retained  by  the  importer, 
manufacturer,  or  producer  as  a  record.  If,  however,  a  record  is  not 
kept  in  this  manner,  the  importer,  manufacturer,  or  producer  will  be 
required  to  keep  a  book  record  provided  by  himself  with  box  headings 
conforming  with  those  of  Forms  810,  810a,  and  810b.  On  each  of 
Forms  810a  and  810b,  in  the  headings  thereof,  will  be  shown  the 
month  and  year  for  which  the  return  is  made,  the  name  and  registry 
number  of  the  taxpayer,  and  the  location  of  his  place  of  business 
(indicated  by  showing  the  street  and  number,  the  town  or  city,  and 
the  State).  On  the  first  page  of  Form  810  the  name,  registry  num- 
ber, district,  the  place  of  business  (indicated  by  giving  the  street  and 
number,  town  or  city,  and  the  State) ,  the  month  and  year  for  which 
the  return  is  made,  and  the  number  of  inclosures  in  the  return  will 
be  shown. 

Art.  82.  Eeceipts. — On  Form  810a  will  be  reported  -all  taxable  nar- 
cotic drugs  and  preparations  received  by  the  registrant  as  an  im- 
porter, manufacturer,  or  compounder.  Such  narcotic  drugs  and 
preparations  so  received  will  be  grouped  separately  in  the  order  of 
receipt  as  (1)  importations,  (2)  goods  received  from  other  sources, 
and  (3)  returned  goods,  and  a  notation  will  be  made  in  the  third 
column  of  each  page  to  show  to  which  of  the  three  classes  the  goods 
listed  thereon  belong.  No  goods  except  those  belonging  to  the  class 
indicated  by  the  notation  should  be  listed  on  the  page.  With  respect 
to  each  item  received  there  will  be  shown  (1)  the  date  and  serial 
number  of  the  order  form,  (2)  the  name  and  address  of  the  person  or 
firm  from  whom  the  goods  are  received,  (3)  the  name  and  quantity 
of  the  drug  or  preparation  shown  by  the  order  form,  (4)  the  number 
of  taxable  packages  constituting  the  item,  (5)  the  quantity  in  ounces 
and  grains  of  narcotic  drugs  in  each  taxable  package,  (6)  the 
name  or  names  of  the  narcotic  ingredient  or  ingi'edients,  indicated 
by  checking  whichever  of  the  designations,  "opium,"  "morphine," 
"  codeine,"  "  heroin,"  "  dionin,"  "  other  opium  alkaloids  and  deriva- 
tives," "  cocaine,"  or  "  coca  leaves,"  shown  on  the  form  is  appro- 
priate, and  (7)  the  total  amount  of  tax  in  dollars  and  cents. 

Art.  83.  Dispositions. — On  Form  810b  will  be  reported  all  disposi- 
tions of  taxable  narcotic  drugs  and  preparations  by  the  registrant  as 
an  importer,  manufacturer,  producer,  or  compounder.  Such  nar- 
cotic clrugs  and  preparations  so  disposed  of  will  be  gi'ouped  sepa- 
rately, in  the  order  of  disposition  as  (1)  domestic  sales,  (2)  exports, 
and  (3)  retuiTied  goods,  and  a  notation  will  be  made  in  the  third 
column  of  each  page  to  show  to  which  of  the  three  classes  the  goods 


40  NARCOTICS. 

listed  thereon  belong.  No  goods  except  those  belonging  to  the  class 
indicated  by  the  notation  should  be  listed  on  the  page.  With  respect 
to  each  item  disposed  of,  there  will  be  shown  in  the  case  of  domestic 
transactions  (1)  the  date  and  serial  number  of  the  official  order 
form,  (2)  the  name,  address,  registry  number,  class,  and  collection 
district  of  the  person  or  finn  to  whom  sold,  (3)  the  name  and  quan- 
tity of  the  drug  or  preparation  as  shown  by  the  order  form,  (4)  the 
number  of  taxable  packages  constituting  the  item,  (5)  the  quantity 
in  ounces  and  grains  of  narcotic  drugs  in  each  taxable  package,  (6) 
the  name  or  names  of  the  narcotic  ingredient  or  ingredients,  indi- 
cated b}?^  checking  whichever  of  the  designations,  "opium,"  "mor- 
phine," "  codeine,"  "  heroin,"  "  dionin,"  "  other  opium  alkaloids  and 
derivatives,"  "  cocaine,"  or  "  coca  leaves,"  shown  on  the  form  is  ap- 
propriate, and  (7)  the  total  amount  of  tax  in  dollars  and  cents. 

In  the  case  of  exports,  the  date  of  the  order  will  be  entered  in 
the  first  column.  The  columns  headed  "  Serial  nmnber,"  "  Registry 
number,"  "  Class,"  and  "  District "  may  be  left  blank. 

Art.  84.  Summary. — On  the  third  page  of  Form  810  will  be  given 
a  summary  of  the  transactions,  in  opium  (crude,  granulated,  and 
powdered),  morphine  and  its  salts,  codeine,  and  its  salts,  heroin  and 
its  salts,  ethyl-morphine  or  dionin,  other  opium  alkaloids  and  de- 
rivatives, cocaine  and  its  salts,  and  coca  leaves,  respectively.  In  this 
summary  will  be  reported  the  quantity  in  ounces,  ounces  and  grains, 
or  in  grains,  as  the  case  may  be,  of  each  of  the  respective  kinds  of 
drugs  on  hand  at  the  beginning  of  the  month  for  which  the  return 
is  made,  including  unmixed  drugs  and  those  contained  in  mixed  prep- 
arations and  remedies,  both  taxable  and  exempted.  There  will  also  be 
separately  reported  tiie  quantity  of  narcotic  drugs  of  each  kind  used 
during  the  month  in  the  manufacture  of  taxable  preparations.  When 
a  preparation  containing  narcotic  ingi-edients  is  used  in  the  manufac- 
ture of  another  preparation  the  summary  should  include  only  the 
quantity  of  the  narcotic  drug  contained  in  the  original  j^reparation, 
and  not  the  entire  bulk  of  such  preparation.  The  quantity  of  nar- 
cotic drugs  of  each  kind  used  during  the  month  in  the  manufacture 
of  exempted  preparations  will  be  shown  in  the  same  manner  as  the 
quantity  used  in  the  manufacture  of  taxable  preparations.  The 
quantity  used  during  the  month  in  filling  prescriptions,  and  the  quan- 
tity lost  or  wasted  in  the  process  of  manufacture  will  also  be  sepa- 
rately shown.  The  final  data  to  be  shown  by  the  summary  will  be  the 
quantity  of  narcotic  drugs  of  each  kind  on  hand  at  the  close  of  the 
month  for  which  the  return  is  made,  and  this  data  should  agree  ex- 
actly with  the  data  indicating  the  quantities  on  hand  at  the  beginning 
of  the  month,  shown  by  the  return  for  the  succeeding  month. 

Art.  85.  Stamp  account. — In  the  space  provided  on  the  third  page 
of  Form  810,  will  be  shown  respectively  (1)  the  value  of  stamps  on 


NARCOTICS.  41 

hand  and  not  affixed  to  packages  at  the  beginning  of  the  month,  (2) 
the  vahie  of  stamps  received  from  the  collector  during  the  month, 

(3)  the  value  of  stamps  used  during  the  m.onth  bj'  affixing  them  to 
packages  containing  drugs  manufactured  or  repacked,  and  (4)  the 
value  of  stamps  on  hand  at  the  close  of  tlie  month. 

WHOLESALE   DEALERS. 

Art.  86.  General. — "Wholesale  dealers  will  render  monthly  returns 
under  oath,  in  duplicate,  to  the  collector  of  internal  revenue  on  the 
first  day  of  each  month  succeeding  that  for  which  rendered,  or  within 
15  days  thereafter.  One  copy  will  be  forwarded  by  the  collector  to 
the  Commissioner  of  Internal  Eevenue.  These  returns  will  be  made 
on  Forms  811,  811a,  and  811b.  These  forms  may  be  written  up  in 
triplicate  and  one  copy,  properly  bound,  retained  by  the  wholesale 
dealer  as  a  record.  If  a  record  is  not  kept  in  this  manner,  the 
wholesale  dealer  will  be  required  to  keep  a  book  record  provided 
by  himself  with  box  headings  conforming  with  those  on  Forms 
811,  811a,  and  811b.  On  each  of  Forms  811a  and  811b,  in  the 
headings  thereof,  will  be  shown  the  month  and  year  for  which 
the  return  is  made,  the  name,  and  the  place  of  business  (indi- 
cated by  giving  the  street  and  number,  the  town  or  city,  and  the 
State)  of  the  person  or  firm  making  the  return.  On  the  first  page 
of  Form  811  will  be  shown  the  name,  registry  nuniber,  district,  place 
of  business  (indicated  by  giving  the  street  and  number,  the  town  or 
city,  and  the  State),  the  month  and  year  for  which  the  return  is 
made,  and  the  number  of  inclosures  in  the  return. 

Art.  87.  Receipts. — On  Form  811a  will  be  reported  all  taxable  nar- 
cotic drugs  and  preparations  received  by  the  registrant  as  a  whole- 
sale dealer.  (See  art.  90,  classes  2  and  3.)  Such  narcotic  drugs  and 
preparations  so  received  will  be  grouped  separately,  in  the  order  of 
receipt,  as  (1)  original  receipts,  and  (2)  returned  goods,  respectively. 
On  each  page  on  which  is  listed  returned  goods  should  be  noted  in 
column  three  after  the  printed  word  "  forward,''  the  words  "  re- 
turned goods."  With  respect  to  each  item  received  will  be  shown 
(1)  the  date  and  serial  number  of  the  order  form,  (2)  the  name  and 
address  of  the  person  or  firm  from  whom  received,  (3)  the  name  and 
quantity  of  the  drug  or  preparation  as  given  on  the  oi:der  form,  and 

(4)  the  number  of  taxable  packages  constituting  the  item. 

Art.  88.  Dispositions. — On  Form  811b  will  be  reported  all  tax- 
able narcotic  drugs  and  preparations  disposed  of  by  the  registrant  as 
a  wholesale  dealer.  Such  narcotic  drugs  and  preparations  so  dis- 
posed of  will  be  grouped  separately,  in  the  order  of  disposition  as 
(1)  domestic  sales,  (2)  exports,  and  (3)  returned  goods,  respectively. 
On  each  page  on  which  exported  or  returned  goods  are  listed  should 


42  NARCOTICS. 

be  noted  in  column  three  after  the  printed  word  "  forward  "  the 
words  "  exports  "  or  "  returned  goods."  Each  item  disposed  of  will 
in  the  case  of  domestic  transactions  be  reported  by  giving  (1)  the  date 
and  serial  number  of  the  order  form,  (2)  the  name,  address,  registry 
number,  class  and  district  of  the  person  or  firm  to  whom  sold,  (3)  the 
name  and  quantity  of  the  drug  or  preparation  as  given  on  the  order 
form,  and  (4)  the  number  of  taxable  packages  constituting  the  item. 

In  the  case  of  exports,  the  date  of  the  order  will  be  entered  in  the 
first  column.  The  columns  headed  "  Serial  number,"  "  Eegistry 
number,"  "  Class,"  and  "  District  "  may  be  left  blank, 

Akt.  89.  Summary. — On  the  third  page  of  Form  811  will  be  given 
a  summary  of  the  transactions  in  taxable  narcotic  drugs  and  prepara- 
tions. In  this  summary  will  be  shown  (1)  the  quantity  of  such 
drugs  and  preparations  on  hand  at  the  beginning  of  the  month  for 
which  the  return  is  made,  (2)  the  quantity  received  during  the 
month,  (3)  the  quantity  disposed  of  during  the  month,  and  (4)  the 
quantity  on  hand  at  the  close  of  the  month  for  which  the  return  is 
made,  the  quantity  in  each  case  to  be  the  number  of  taxable  pack- 
ages. 

TRANSFERS,   ETC. 

Art.  90.  Transfers — Class  1. — One  registered  as  a  member  of  class 
1,  who  is  also  registered  at  the  same  premises  as  a  member  of  any 
other  class,  must  take  up  all  taxable  goods  received  and  intended  for 
manufacturing,  repacking,  etc.,  on  his  account  as  a  member  of  class 
1.  Wlien  one  registered  as  a  member  of  class  1  and  also  as  a  whole- 
sale dealer  at  the  same  premises,  receives  goods  in  stamped  packages 
intended  for  sale  in  such  packages  they  should  be  taken  up  in  his 
account  as  a  wholesale  dealer. 

Classes  1  and  2. — ^When  a  member  of  class  1  makes  transfers  as  a 
member  of  class  1  to  his  stock  as  a  wholesale  dealer  (class  2),  he  must 
report  each  transfer  on  Form  810b  in  the  same  manner  as  other  dis- 
positions (see  art".  83) ,  except  that,  an  order  form  not  being  necessary, 
instead  of  giving  the  date  and  serial  number  of  the  order  form  (see 
art.  102),  an  appropriate  notation  must  be  made  indicating  such 
transfer.  Narcotic  drugs  and  preparations  transferred  from  the 
stock  of  the  registrant  as  a  wholesale  dealer  to  his  stock  as  a  member 
of  class  1  should  be  reported  in  the  same  manner  on  Form  811b  (see 
art.  87)  and  recorded  received  as  a  member  of  class  1  on  Form  810a 
(see  art.  82). 

Classes  1  and  3. — If  a  member  of  class  1  is  also  registered  as  a 
retail  dealer,  narcotics  transferred  from  his  account  as  a  member  of 
class  1  to  his  account  as  a  retail  dealer  will  also  be  reported  on  Form 
810b  (see  art.  83)  in  the  same  manner  as  transfers  of  narcotics  to 


2i7ARCOTICS.  43 

his  account  as  a  wholesale  dealer.  In  case  one  registered  as  a  member 
of  class  1  transfers  stock  from  his  account  as  a  member  of  such 
class  to  himself  as  a  retail  dealer,  and  subsequently  transfers  the 
same  stock  back  to  his  account  as  a  member  of  class  1,  the  second 
transfer  must  be  entered  on  Form  810a  among  the  items  headed  as 
"Returned  goods,"  in  the  same  manner  as  transfers  of  narcotics 
from  a  wholesale  dealer's  stock  to  his  stock  as  a  member  of  class  1. 

Classes  2  and  3. — ^Where  a  wholesale  dealer  is  also  registered  as  a 
retail  dealer  at  the  same  address,  narcotics  received,  whether  for 
wholesale  or  retail  trade,  must  be  reported  on  Form  811a.  In  order 
for  any  person  having  such  a  double  registration  to  use  any  part  of 
narcotic  drugs  and  preparations  purchased  by  him  in  retail  trade, 
it  will  be  necessary  for  him  to  transfer  such  drugs  and  preparations 
from  his  account  as  a  wholesale  dealer  to  himself  as  a  retail  dealer. 
Such  transfers  will  be  reported  on  Form  811b  in  the  same  manner 
as  other  dispositions  (see  art.  88),  except  that  instead  of  giving  the 
date  and  serial  number  of  the  order  form  (see  art.  102)  of  each  item, 
an  appropriate  notation  must  be  made  indicating  the  transfer.  Nar- 
cotic drugs  and  preparations  transferred  from  a  retail  stock  to  the 
registrant's  stock  as  a  wholesale  dealer  must  be  reported  on  Form 
811a  in  the  same  manner  and  entered  on  the  pages  headed  "  Returned 
goods." 

Art.  91.  Collectors  will  examine  and  forward  report. — ^Upon  receipt 
of  reports,  collectors  will  carefully  examine  same  and  see  that  they 
are  correct  and  properly  rendered  in  every  respect  before  forward- 
ing copy  to  the  Commissioner.  The  examinations  should  be  made 
promptly  and  all  original  returns  forwarded  to  the  Commissioner  of 
Internal  Revenue  within  10  days  after  receipt  from  taxpayers,  the 
duplicate  returns  being  retained  in  the  collectors'  offices. 

Art.  92.  Transfer  of  business— Class  1  or  2.  — A  person  registered  in 
class  1  or  2  (see  art.  21),  desiring  to  transfer  his  business  to  a  suc- 
cessor who  will  continue  the  business  at  the  same  location  will  be 
required  to  notify  the  collector  of  the  district  (see  art.  59).  Upon 
qualification  of  his  successor,  the  collector  will  detail  a  deputy  to 
proceed  to  the  place  of  business  and  supervise  the  taking  of  an  in- 
ventory of  the  stock.  The  person  retiring  from  business  will  render 
a  return,  as  indicated  in  the  preceding  articles,  covering  the  trans- 
actions occurring  during  the  portion  of  the  month  preceding  the 
transfer.  Such  final  returns  must  show  to  whom  the  business  was 
transferred.  The  successor  must  render  a  similar  return  covering 
the  balance  of  the  month  and  showing  who  the  predecessor  was. 
In  all  cases  where  a  transfer  of  ownership  or  indentity,  as  by  the 
taking  in  of  a  partner,  etc.,  is  made,  this  procedure  will  be  followed. 


44  NARCOTICS. 

MISCELLANEOUS  REGULATIONS. 

[Section  1 — Continued.] 

The  Commissioner  of  Internal  Revenue,  witli  the  approval  of  the  Sec- 
retary of  tlie  Treasury,  shall  make  all  needful  rules  and  regulations  for 
carrying  the  provisions  of  this  Act  into  effect. 

Art.  93.  Chemists. — Chemists  and  chemical  laboratories  subject  t© 
tax  (see  art.  27)  and  procuring  narcotic  drugs  to  be  used  as  reagents 
in  analytical  work  (see  art.  101  as  to  order  forms)  must  keep  records 
and  render  returns  the  same  as  other  members  of  class  1  (see  arts 
81  to  85). 

Art.  94.  Manner  of  keeping  drugs. — Narcotic  drugs  and  prepara- 
tions must  at  all  times  be  segregated  from  the  general  stock  of  drugs 
or  medicines  and  be  kept  under  lock  and  key. 

Art.  95.  Losses  by  accident. — Where  narcotic  drugs  or  preparations 
are  lost  or  destroyed  through  breakage  of  the  container  or  other  acci- 
dent in  the  course  of  transportation  or  otherwise,  it  will  be  necessary 
for  the  pei-son  having  title  thereto  to  make  affidavit  as  to  the  quantity 
and  kind  of  drugs  lost  or  destroyed,  and  the  reason  therefor,  and  for- 
ward the  same  to  the  collector  of  internal  revenue  immediately,  who 
will,  if  he  deems  it  advisable,  have  an  investigation  made.  A  copy 
of  such  affidavit  should  be  placed  on  file  with  the  duplicate  order 
form.     As  to  losses  in  transit,  see  also  article  113. 

Art.  96.  Procedure  in  case  of  theft. — ^Where  losses  by  theft  occur, 
a  sworn  statement  of  the  facts,  a  list  of  the  lost  narcotic  drugs  and 
preparations  stolen,  and  evidence  that  the  local  authorities  were  noti- 
fied must  be  filed  immediately  with  the  collector. 

Art.  97.  Court  sales. — Court  officers  in  making  sales  of  narcotic 
drugs  and  preparations  under  judicial  proceedings  must  prepare  a 
complete  inventory,  in  duplicate,  of  such  drugs  and  preparations, 
forward  the  original  to  the  collector  of  internal  revenue,  and  re- 
quire the  purchaser,  who  must  be  a  registered  person,  to  make  out,  in 
duplicate,  an  official  order  form,  the  original  to  be  given  the  insolvent 
concern  and  the  duplicate  to  be  retained  by  the  purchaser.  Upon 
receipt  of  the  drugs  or  preparations  the  purchaser  must  prepare  a 
supplementary  inventory,  in  duplicate,  forward  the  duplicate  to  the 
collector  and  retain  the  original  in  his  file.  As  to  inventories  in 
general,  see  article  12. 

Art.  98.  TJnclaimed  freight  or  express  packages. — The  sale  of  un- 
claimed freight  or  express  packages  containing  narcotic  drugs,  by 
officials  of  railways  and  express  companies,  at  public  auction,  to  un- 
registered persons,  except  exempt  officials  of  Federal,  State,  or  muni- 
cipal governments  (see  arts.  41  to  48)  is  in  violation  of  the  law. 

AMien  a  sale  of  such  packages  is  to  be  made,  the  collector  of  the 
district  should  be  notified  by  the  railway  or  express  officials  a  suffi- 
cient length  of  time  in  advance  of  the  sale  to  permit  the  detail  by  the 
(Collector  of  an  officer  to  inspect  all  unclaimed  packages  to  be  sold 


NAECOTICS,  45 

and  identify  such  as  T^ontain  narcotic  drugs.  An  internal  revenue 
officer  must  be  jDresent  at  the  time  of  sale  to  see  that  the  packages 
containing  narcotic  drugs  are  .sold  only  to  persons  who  are  registered 
ander  the  law,  or  to  exempt  officials. 

The  registered  person  securing  narcotic  drugs  through  such  sale 
must,  at  time  of  purchase,  make  a  supplementary  inventory  (see  art. 
12),  in  duplicate,  of  the  drugs  coming  into  his  possession;  retain  the 
original  for  file  with  his  order  forms,  and  forward  the  duplicate  to  the 
collector. 

Art.  99.  Ocean  vessels. — Xarcotic  drugs  and  preparations  for  stock- 
ing medicine  chests  and  dispensaries  maintained  on  board  vessels 
in  international  trade  and  vessels  engaged  in  trade  between  ports 
of  the  United  States  (provided  there  is  no  registered  physician 
employed  on  board  the  same),  and  vessels  belonging  to  the  vari- 
ous departments  of  the  Government,  may  only  be  obtained  with  the 
approval  of  commissioned  medical  officers  and  acting  assistant  sur- 
geons of  the  United  States  Public  Health  Service,  and  upon  special 
order  forms  procurable  from  such  officers.  If  a  physician  registered 
under  the  provisions  of  this  act  is  employed  on  board  a  merchant 
vessel,  such  medical  supplies  may  be  purchased  only  upon  his  order. 

ORDER  FORMS. 

Sec.  2.  That  it  shall  be  unlawful  for  any  person  to  sell,  barter,  exchange,  or 
give  away  any  of  the  aforesaid  drugs  except  in  pui-suance  of  a  written  order 
of  the  person  to  whom  such  article  is  sold,  bartered,  exchanged,  or  given,  on 
a  form  to  be  issued  in  blank  for  that  purpose  by  the  Commissioner  of  In- 
ternal Revenue.  Every  person  who  shall  accept  any  such  order,  and  in  pur- 
suance thereof  shall  sell,  barter,  exchange,  or  give  away  any  of  the  aforesaid 
drugs,  shall  preserve  such  grder  for  a  period  of  two  years  in  such  a  way  as  to 
be  readily  accessible  to  inspection  by  any  officer,  ;igent,  or  employee  of  the 
Treasury  Department  duly  authorized  for  that  purpose,  and  the  State,  Terri- 
torial, District,  municipal,  aud  insular  officials  named  in  section  five  of  this  Act. 
Every  i)erson  who  shall  give  an  order  as  herein  provided  to  any  other  person 
for  any  of  the  aforesaid  drugs  shall,  at  or  before  the  time  of  giving  such 
order,  make  or  cause  to  be  made  a  duplicate  thereof  on  a  form  to  be  issued 
in  blank  for  that  purpose  by  the  CommLssioner  of  Internal  Ilevenue,  and  in 
case  of  the  acceptance  of  such  order,  shall  preserve  .such  duplicate  for  said 
period  of  two  years  in  such  a  way  as  to  be  readily  accessible  to  inspection  by 
the  officers,  agents,  employees,  and  officials  hereinbefore  mentioned.  Nothing 
contained  in  this  section  shall  apply — 

(a)  To  the  dispensing  or  distribution  of  any  of  the  aforesaid  drugs  to  a 
patient  by  a  physician,  dentist,  or  veterinary  surgeon  registered  under  this 
A.ct  in  the  course  of  his  professional  practice  only :  Provided,  That  such  phy- 
sician, dentist,  or  veterinary  surgeon  shall  keep  a  record  of  all  such  drugs  dis- 
pensed or  distributed,  slio\nng  the  amount  dispensed  or  distributed,  the  date, 
and  the  name  and  address  of  the  patient  to  whom  such  drugs  are  dispensed  or 
distributed,  except  such  as  may  be  dispensed  or  distributed  to  a  patient  upon 
whom  such  physician,  dentist  or  veterinary  siu'goon  shall  personally  attend ; 
and  such  rectrd  shall  be  kept  for  a  period  of  two  years  from  the  date  of  dis- 
pensing or  distributing  such  drugs,  subject  to  inspection,  as  provided  in  this 
Act. 


46  NAECOTICS. 

(b)  To  the  sale,  dispensing,  or  distribution  of  asy  of  the  aforesaid  drugs 
by  a  dealer  to  a  consumer  under  and  in  pursuance  of  a  written  prescription 
issued  by  a  physician,  dentist,  or  veterinary  surgeon  registered  under 
this  Act:  Provided,  Jioioever,  That  such  prescription  shall  be  dated  ass 
of  the  day  on  which  signed  and  shall  be  signed  by  the  physician,  dentist,  or 
veterinary  surgeon  who  shall  have  issued  the  same :  And  provided  fiirtlier. 
That  such  dealers  shall  preserve  such  prescription  for  a  period  of  two  years 
from  the  day  on  which  such  prescription  is  filled  in  such  a  way  as  to  be  readily 
accessible  to  inspection  by  the  officers,  agents,  employees,  and  officials  herein- 
before mentioned. 

(c)  To  the  sale,  exportation,  shipment  or  delivery  of  any  of  the  aforesaid 
drugs  by  any  person  within  the  United  States  or  any  Territory  or  the  District 
of  Columbia  or  any  of  the  insular  possessions  of  the  United  States  to  any 
person  in  any  foreign  country,  regulating  their  entry  in  accordance  with  such 
regulations  for  importation  thereof  into  such  foreign  country  as  are  pre- 
scribed by  said  country,  such  regulations  to  be  promulgated  from  time  to  time 
by  the  Secretary  of  State  of  the  United  States. 

(d)  To  the  sale,  barter,  exchange,  or  giving  away  of  any  of  the  aforesaid 
drugs  to  any  officer  of  the  United  States  Government  or  of  any  State,  terri- 
torial. District,  county,  or  municipal  or  insular  government  lawfully  engaged 
in  making  purchases  thereof  for  the  various  departments  of  the  Army  and 
Navy,  the  Public  Health  Service,  and  for  Government,  State,  territorial,  Dis- 
trict, county,  or  municipal  or  insular  hospitals  or  prisons. 

The  Commissioner  of  Internal  Revenue,  with  the  approval  of  the  Secretary 
of  the  Treasury,  shall  cause  suitable  forms  to  Ibe  prepared  for  the  purposes  above 
mentioned,  and  shall  cause  the  same  to  be  distributed  to  collectors  of  internal 
revenue  for  sale  by  them  to  those  persons  who  shall  have  registered  and  paid 
the  special  tax  as  required  by  section  one  of  this  Act  in  their  districts,  re- 
spectively;  and  no  collector  shall  sell  any  of. such  forms  to  any  persons  other 
than  a  person  who  has  registei*ed  and  paid  the  special  tax  as  required  by 
section  one  of  this  Act  in  his  district.  The  price  at  which  such  forms  shall 
be  sold  by  said  collectors  shall  be  fixed  by  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury,  but  shall  not 
exceed  the  sum  of  $1  per  hundred.  Every  collector  shall  keep  an  account  of 
the  number  of  such  forms  sold  by  him,  the  names  of  the  purchasers,  and  the 
number  of  such  forms  sold  to  each  of  such  purchasers.  Whenever  any  col- 
lector shall  sell  any  of  such  forms,  he  shall  cause  the  name  of  the  purchaser 
thereof  to  be  plainly  written  or  stamped  thereon  before  delivering  the  same; 
and  no  person  other  than  such  purchaser  shall  use  any  of  said  forms  bearing 
the  name  of  such  purchaser  for  the  puiTose  of  procuring  any  of  the  aforesaid 
drugs,  or  furnish  any  of  the  forms  bearing  the  name  of  such  purchaser  to  any 
person  with  intent  thereby  to  procure  the  shipment  or  delivery  of  any  of  the 
aforesaid  drugs.  It  shall  be  unlawful  for  any  person  to  obtain  by  means  of 
said  order  forms  any  of  the  aforesaid  drugs  for  any  purpose  other  than  the 
use,  sale,  or  distribution  thereof  by  him  in  the  conduct  of  a  lawful  business 
in  said  drugs  or  in  the  legitimate  practice  of  his  profession. 

The  provisions  of  this  Act  shall  apply  to  the  United  States,  the  District  of 
Columbia,  the  Territory  of  Alaska,  the  Territory  of  Hawaii,  the  insular  pos- 
sessions of  the  United  States,  and  the  Canal  Zone.  In  Porto  Rico  and  the 
Philippine  Islands  the  administration  of  this  Act,  the  collection  of  the  said 
special  tax,  and  the  issuance  of  the  order  forms  specified  in  section  two  shall 
be  performed  by  the  appropriate  internal-revenue  officers  of  those  governments, 
and  all  revenues  collected  hereunder  in  Porto  Rico  and  the  Philippine  Islands 
shall  accrue  intact  to  the  general  governments  thereof,  respectively.  The 
courts  of  first  instance  in  the  Philippine  Islands  shall  possess  and  exercise 


NARCOTICS.  47 

jurisdiction  in  all  cases  arising  under  triis  Act  in  said  islands.  The  President 
is  autliorized  and  directed  to  issue  such  Executive  orders  as  will  carry  into 
effect  in  the  Canal  Zone  the  intent  and  purpose  of  this  Act  by  providing  for 
the  registration  and  the  imposition  of  a  special  tax  upon  all  persons  in  the 
Canal  Zone  who  produce,  import,  compound,  deal  in,  dispense,  sell,  distribute, 
or  give  away  opium  or  coca  leaves,  their  salts,  derivatives,  or  preparations. 

PROCUREMENT. 

Art.  100.  Purpose  of  order  forms. — Order  forms  are  required  to  be 
used  so  tliat  transfers  of  narcotic  drugs  from  one  person  to  another 
may  be  traced  and  the  proper  person  held  responsible  m  case  of  their 
misuse.  The  correct  use  of  order  forms  is  of  the  very  highest  im- 
portance, and  no  violation  of  the  regulations  with  respect  thereto  will 
be  tolerated.  Each  collector  will  be  held  responsible  for  the  order 
forms  which  he  receives.  Registered  persons  will  likewise  be  held 
responsible  for  the  unused  order  forms  in  their  possession  and  should 
keep  such  forms  in  a  safe  or  under  lock  and  key  to  prevent  their 
falling  into  the  hands  of  unauthorized  persons. 

Order  forms  must  be  used  only  for  the  procurement  of  narcotic 
drugs  and  preparations  within  the  purview  of  the  law.  They  should 
not  be  used  for  ordering  preparations  which  do  not  contain  narcotics 
nor  need  they  be  used  for  ordering  exempt  preparations.  With  re- 
spect to  exempt  preparations,  see  articles  139  to  148. 

Imports. — Order  forms  must  be  used  in  withdrawing  goods  from 
customs  custody. 

Art.  101.  Analytical  chemists. — Chemists  and  chemical  laboratories 
subject  to  special  tax  (see  art.  27)  must  procure  any  narcotic  drugs 
to  be  used  as  test  reagents  in  analytical  work  on  order  forms.  As  to 
records  to  be  kept,  see  article  93. 

Art.  102.  Not  required — When. — Narcotic  drugs  and  preparations 
may  be  transferred  from  on©  person  to  another  without  the  use  of 
order  forms,  (1)  pursuant  to  prescriptions  issued  for  legitimate 
medical  purposes  (see  arts.  115  to  125),  (2)  when  dispensed  by  a 
practitioner  for  legitimate  medical  purposes  to  his  own  bona  fide 
patients  (see  art.  12G). 

Neither  is  the  use  of  order  forms  necessary  to  cover  transfers  made 
by  a  person  registered  at  the  same  location  in  more  than  one  class 
from  his  account  as  a  member  of  one  class  to  his  account  as  a  member 
of  another  class,  except  that  one  registered  as  a  member  of  class  4 
(see  art.  21),  who  is  also  registered  as  a  member  of  class  1,  2,  or  3, 
must  use  order  forms  to  cover  transfers  to  or  from  himself  as  a 
member  of  class  4. 

Art.  103.  Ey  v/hom  procurable. — Blank  order  forms  may  be  obtained 
only  by  persons  who  are  duly  registered  (see  arts.  5  and  139)  and 
have  legitimate  use  therefor.  Order  forms  will  not  be  furnished  to 
persons  registered  in  class  5  (see  art.  21)  who  are  not  manufacturers, 
since  such  persons  could  have  no  legitimate  use  for  them. 


48  NARCOTICS. 

Art.  i04.  Manner  of  procurement  and  issuance. — A  person  desiring 
and  entitled  to  receive  order  forms  (see  art.  103)  should  forward 
requisition  on  Fomi  679  to  the  collector  of  the  district  in  which  he  is 
doing  business.  The  applicant  must  place  his  registry  number  (see 
art.  13)  in  the  space  provided  therefor  in  the  upper  right-hand  corner 
of  the  blank.  The  order  forms  are  issued  in  books  containing  10 
forms  each.  A  charge  of  10  cents  is  made  for  each  book.  The  requi- 
sition should  be  accompanied  by  remittance  of  the  proper  amount. 
Blank  requisition  Form  679  may  be  obtained  from  the  collector. 
Before  issuing  the  order  forms  the  collector  will  cause  to  be  shown 
thereon  the  name,  address,  registry  number,  and  class  number  or 
numbers  of  the  jjerson  to  whom  they  are  supplied. 

Art.  105.  Requisitions  to  be  filed. — The  collector  will  stamp  each 
requisition  with  the  date  when  filled,  enter  thereon  the  first  and  last 
serial  number  of  the  order  forms  sold  in  pursuance  thereof,  and  file 
all  requisitions  bearing  a  given  registry  number  together.  The  requi- 
sitions will  thus  serve  as  a  record  of  the  order  forms  procured  by  each 
person. 

Art.  106.  Signatures  to  be  compared. — ^The  signature  on  the  requisi- 
tion must  be  compared  with  that  appearing  on  the  application  for 
registration  (see  art.  6)  or,  if  the  requisition  is  signed  by  an  agent, 
the  signature  must  be  compared  with  that  appearing  in  the  power 
of  attorney  (see  art.  108).  Unless  the  collector  is  satisfied  that  the 
requisition  is  authentic  it  will  not  be  honored. 

EXECUTION  AND  FILING. 

Art.  107.  Gentral. — Order  forms  are  issued  in  duplicate  and  must 
be  executed  in  duplicate.  They  are  arranged  to  permit  the  execution 
of  the  original  and  duplicate  simultaneously  by  insertion  of  a  carbon 
sheet.  The  original  must  not  leave  the  possession  of  the  person 
executing  it  until  the  duplicate  is  made.  Persons  who  fail  to  execute 
a  duplicate  are  liable  to  punishment  under  section  9  of  the  statute. 
(See  art.  153.) 

The  duplicate  must  be  kef)t  on  file  for  at  least  two  years  by  the  per- 
son executing  it.  The  original  is  to  be  filed  and  preserved  for  a  like 
period  by  the  person  accepting  the  order.  An  order  is  regarded  as 
accepted  when  notice  to  that  effect  is  given,  or,  if  no  notice  is  given, 
when  the  goods  are  delivered  or  shipped.  With  respect  to  unaccepted 
orders,  see  article  110. 

The  attachment  of  extra  sheets  to  order  forms  is  not  permitted. 
If  one  order  form  is  not  sufficient  to  include  all  the  items  of  an  order5 
a  second  form  must  be  used.  The  order  forms  are  intended  solely 
for  the  transfer  of  narcotic  drugs  and  preparations  from  one  regis- 
tered person  to  another.  They  must  not  in  any  case  be  used  as 
prescriptions. 


NARCOTICS.  49 

Art.  108.  Signature. — The  signing  of  narcotic  order  forms  with  the 
iiame  of  a  firm,  corporation,  etc.,  without  indication  of  individual 
responsibility  is  not  permissible.  Neither  may  the  name  of  the  per- 
son Vviio  is  individually  responsible  be  printed  or  stamped,  but  the 
signature  of  the  person  signing  the  application  for  registration  (see 
art.  8)  must  appear  in  his  own  handwriting. 

Exception — poxoer  of  attorney. — However,  when  it  is  impossible 
for  the  person  signing  tlie  application  for  registration  to  sign  the 
order  forms  himself,  they  may  be  signed  by  another  person,  provided 
a  legally  effective  power  of  attorney  authorizing  such  other  person 
to  sign  order  forms  has  previously  been  filed  with  and  approved  by 
the  collector. 

Art.  109.  Entering  of  items — Fluid  preparations. — When  packages 
containing  less  than  16  fluid  ounces  each  are  ordered,  the  number  of 
ounces  in  each  package  shall  be  indicated  on  the  order  form.  If  the 
packages  contain  16  ounces  or  more  each,  the  content  of  each  package 
may  be  shovN'n  in  terms  of  pints,  quarts,  or  gallons.  However,  the 
content  of  each  single  package  must  be  shown.  It  is  not  permissible 
to  show  the  entire  content  of  a  number  of  packages  as  a  single  whole 
without  specifying  the  content  of  eacli  individual  package. 

Non-Uquid  'preparations. — In  the  case  of  preparations  in  solid, 
powder,  or  other  than  liquid  form,  the  content  of  each  individual 
package  (see  art.  68)  should  be  entered  in  terms  of  ounces  or  grains 
or,  if  the  preparation  be  put  up  in  tablet,  pill,  ampoule,  or  sup- 
pository form,  the  number  of  units  in  each  individual  package  may 
be  stated. 

Name  of  narcotic. — Whether  the  preparation  be  in  liquid  or  non- 
liquid  form  the  name  or  names  of  the  particular  narcotic  or  narcotics 
contained  therein  should  be  shown. 

Art.  110.  Unaccepted  orders. — If  an  order  is  not  accepted  or  if,  for 
any  reason,  one  can  not  be  filled,  the  form  should  be  returned  to  the 
maker  with  a  letter  of  explanation.  When  received  by  the  maker 
the  returned  original  and  the  letter  of  explanation  must  be  at- 
tached to  the  duplicate  and  retained  on  file.  An  order  form  once 
executed  to  one  vendor  can  not  be  forwarded  to  another  vendor. 

Mlien  an  order  can  not  be  filled  in  its  entirety,  a  notation  showing 
the  actual  quantities  supplied,  and  the  date  of  delivery,  should  be 
made  by  the  vendor  on  the  original  and  by  the  vendee  on  the  dupli- 
cate. Like  notations  should  also  be  made  showing  the  filling  of 
the  balance  of  tlie  oixler  or  any  portion  thereof  at  any  subsequent 
time  or  times. 

Art.  111.  Forms  mutilated,  lost,  or  destroyed. — If  an  order  form  is 
improperly  executed  or  mutilated  so  as  to  make  it  unusable,  it 
must  not  be  destroyed,  but  both  the  original  and  duplicate  should 
be  kept  on  file  with  the  other  duplicates. 


50  NAECOTICS. 

If  an  original  order  form  is  lost  in  course  of  transmission,  the 
person  executing  it  shall,  upon  advice  of  the  person  to  whom  it  was 
directed  that  it  has  not  been  received,  execute  another  order  in  dupli- 
cate and  an  affidavit  stating  that  the  goods  covered  by  the  first 
order  were  not  received  through  loss  of  the  order  form,  noting  on 
the  second  order  the  number  and  date  of  the  lost  order  and  the  fact 
that  same  was  lost.  The  duplicate  of  the  second  order  and  the 
affidaAnt  will  be  filed  with  the  duplicate  of  the  order  form  first  exe- 
cuted. The  second  original  order  form  will,  of  course,  be  forwarded 
in  due  course.  If  the  first  order  form  should,  subsequently,  be  re- 
ceived by  the  person  to  whom  it  was  directed,  the  latter  will  mark 
upon  the  face  thereof,  "  Not  accepted,"  and  return  it  to  the  sender, 
who  will  attach  it  to  the  duplicates  and  the  affidavit  already  on  file. 

Art.  112.  Unused  forms. — Order  forms  may  not,  except  as  indicated 
below,  be  used  after  the  expiration  of  the  period  or  periods  for  which 
the  person  receiving  them  registers.  Any  unused  forms  in  the 
possession  of  any  person  after  expiration  of  the  period  or  periods 
of  registration  should  be  forwarded  to  the  collector  by  whom  they 
were  issued,  who  will  mark  them  "  Canceled."  Thej'  will  thereupon 
be  returned  to  the  former  registrant  who  will  keep  them  on  file 
with  the  used  duplicates  for  two  years. 

The  same  procedure  should  be  followed  in  case  of  one  who,  on 
account  of  insolvency  or  otherwise,  discontinues  business  prior  to 
the  expiration  of  the  period  for  which  tax  has  been  paid. 

Exception^  change  of  ownership. — In  case  of  change  of  ownership 
of  a  business,  the  successor,  if  duly  registered  (see  arts.  6  to  15)  may 
use  order  forms  of  his  predecessor  after  same  have  been  returned  to 
the  collector  and  overprinted  by  him  with  the  registry  number  and 
class  of  the  successor. 

Art.  113.  Narcotics  lost  in  transit. — Whenever  narcotics  ordered  by 
a  registered  dealer  on  a  regular  order  form  are  lost  in  transit,  the 
purchaser  shall  file,  within  30  days  from  date  of  invoice,  with  the 
collector  of  his  district,  an  affidavit  setting  forth  the  material  facts, 
including  the  number  of  the  order  form,  the  kind  and  quantity  of 
eacK  kind  of  narcotics  ordered  thereon,  the  name  of  the  manufacturer 
or  dealer  from  whom  ordered,  the  date  of  such  order,  and  Avhether  or 
not  claim  has  been  made.  A  copy  of  this  affidavit  shall  be  attached  to 
the  duplicate  order  form  on  file  in  the  possession  of  the  purchaser 
and  a  notation  in  red  ink  written  across  the  duplicate  order  form  as 
follows : 

"  Narcotics  on  this  order  form  not  received ;  loss  in  transit  reported 
to  seller  (giving  date)." 

In  case  the  lost  goods  are  recovered,  a  statement  to  that  effect  to- 
gether with  date  of  receipt  should  be  indorsed  upon  the  duplicate 
order  form.     Should  the  goods  not  be  recovered  but  payment  on  ac- 


NARCOTICS.  51 

count  of  the  loss  thereof  be  made  by  the  common  carrier,  notation  to 
that  effect  should  be  indorsed  upon  the  duplicate  order  form.  If 
claim  is  made  after  the  affidavit  is  rendered  to  the  collector,  the  latter 
should  be  so  notified. 

In  cases  where  losses  in  transit  occur,  the  seller  is  not  authorized 
to  make  good  the  loss  by  duplicating  the  original  shipment  on  the 
same  original  order  form.  A  separate  original  order  form  covering- 
each  and  every  separate  shipment  of  narcotics  is  required. 

Art.  114.  Miscellaneous. — With  respect  to  use  of  order  forms  to 
cover  sales  under  judicial  proceedings,  sales  of  unclaimed  freight, 
sales  of  drugs  for  use  on  board  seagoing  vessels,  etc.,  see  articles  94 
to  99. 

Retailers  and  Practitioners. 

PRESCRIPTIONS— GENERAL. 

Art.  115.  Who  may  issue. — A  prescription,  in  order  to  be  effective 
in  legalizing  the  transfer  and  possession  of  narcotic  drugs  without 
the  use  of  an  order  form  (see  art.  102),  must  be  issued  by  a  physician, 
dentist,  veterinary  surgeon,  or  other  practitioner  who  has  duly  regis- 
tered (see  arts,  11,  21,  and  30). 

Art.  116.  Who  may  fill. — A  prescription,  in  order  to  be  effective, 
must  also  be  filled  by  a  retail  dealer  registered  in  class  3  (see  arts. 
21  and  29),  or  by  a  member  of  class  1  who  is  qualified  to  sell  drugs 
at  retail  (see  art.  29). 

Art.  117.  Purpose  of  issue. — A  prescription,  in  order  to  be  effective 
in  legalizing  the  possession  of  unstamped  narcotic  drugs  and  elim- 
inating the  necessity  for  use  of  order  forms,  must  be  issued  for  legiti- 
mate medical  purposes.  An  order  purporting  to  be  a  prescription 
issued  to  an  addict  or  habitual  user  of  narcotics,  not  in  the  course 
of  professional  treatment  in  an  attempted  cure  of  the  habit,  but  for 
the  purpose  of  providing  the  user  with  narcotics  sufficient  to  keep 
him  comfortable  b}'  maintaining  his  customary  use  is  not  a  prescrip- 
tion within  the  meaning  and  intent  of  the  act ;  and  the  persons  filling 
and  receiving  drugs  under  such  an  order,  as  well  as  the  person  issuing 
it,  will  be  regarded  as  guilty  of  violation  of  the  law.  (See  T.  D. 
2809,  dated  Mar.  20,  1919.) 

Exceptio7is. — Exceptions  to  this  rule  may  be  properly  recognized 
(1)  in  the  treatment  of  incurable  disease,  such  as  cancer,  advanced 
tuberculosis,  and  other  diseases  well  recognized  as  coming  within 
this  class,  where  the  physician  directly  in  charge  of  a  bona  fide 
patient  suffering  from  such  disease  prescribes  for  such  patient, 
in  the  course  of  his  professional  practice  and  strictly  for  legiti- 
mate medical  purposes,  and  in  so  prescribing,  indorses  upon  the 
prescription  that  the  drug  is  dispensed  in  the  treatment  of  an  in- 
curable disease;  and   (2)   where  the  attending  physician  prescribes 


52  NARCOTICS. 

for  an  aged  and  infirm  addict  whose  collapse  from  the  withdrawal 
of  the  drug  would  result  in  death  and  in  which  case  he  indorses  upon 
the  prescription  that  the  patient  is  aged  and  infirm,  giving  age,  and 
that  the  drug  is  necessary  to  sustain  life.  (See  M — Mim.  2212,  dated 
July  31,  1919.) 

EXECUTION  OF  PRESCRIPTIONS. 

Art.  118.  Responsibility. — The  duty  of  properly  preparing  pre- 
scriptions is  upon  the  practitioner,  and  he  is  liable  to  the  penalties 
provided  by  the  act  in  case  of  failure  to  insert  the  information  re- 
quired by  the  law.  A  prescription  may  be  prepared  by  a  secretary 
or  agent  for  the  signature  of  a  practitioner,  but  the  practitioner  will 
be  held  responsible  in  case  the  prescription  does  not  conform  in  all 
essential  respects  to  the  law  and  regulations.  A  corresponding  lia- 
bility rests  upon  the  druggist  M^ho  fills  a  prescription  not  prepared  in 
the  form  prescribed  by  law. 

Art.  119.  Manner  of  execution — Practitioners. — All  prescriptions  for 
drugs  and  preparations  not  specifically  exempt  under  section  6  of 
the  act  (see  arts.  139  to  148)  must  be  dated  as  of  and  signed  on  the 
day  when  issued  and  must  bear  the  full  name  and  address  of  the 
patient  and  the  name,  address,  and  registry  number  of  the  practi- 
tioner. A  phj'sician  may  sign  prescriptions  in  the  same  manner  as  he 
Avould  sign  a  check  or  legal  document,  as,  for  instance :  J.  H.  Smith, 
John  H.  Smith,  or  John  Henry  iSmith.  Prescriptions  must  be  writ- 
ten with  ink  or  indelible  pencil  or  typewritten ;  if  typewritten,  they 
must  be  signed  by  the  practitioner  with  ink  or  indelible  pencil. 

Druggists. — The  druggist  who  fills  a  prescription  will  show  on  the 
back  thereof  the  signature  and  address  of  the  person  who  secures 
the  drug  or  preparation  prescribed  and  must  preserve  the  prescrip- 
tion for  a  period  of  two  years  from  the  date  indicated  thereon. 
(See  art.  124.) 

Art.  120.  Refilling. — The  refilling  of  a  narcotic  prescription  is  pro- 
hibited except  where  the  preparation  covered  by  the  prescription  might 
have  lawfully  been  sold  in  the  first  instance  without  a  j)rescription  or 
order  form.  As  to  such  preparations,  see  articles  139  to  148.  The 
provisions  of  T.  D.  2766,  dated  October  22,  1918,  allowing  refilling 
of  prescriptions  for  nonexempt  preparations  are  hereby  revoked. 

Art.  121.  Partial  filling. — The  partial  filling  of  prescriptions  will 
not  be  permitted,  under  any  circumstances. 

Art.  122.  Telephone  orders. — It  is  not  permissible  to  supply  nar- 
cotics pursuant  to  telephone  advice  of  practitioners  without  prescrip- 
tions, whether  prescriptions  covering  such  orders  are  subsequently 
received  or  not. 

Art.  123.  Forms  to  be  used. — The  Government  does  not  furnish  pre- 
scription forms  and  tlie  order  forms  which  are  supplied    (see  art. 


NARCOTICS.  ^  53 

104)  must  not  be  used  as  prescriptions.  Any  prescription  form  may 
be  used  provided  it  is  properly  executed  and  shows  the  required  in- 
formation.    (See  art.  119.) 

Art.  124.  Filing. — Dealers  who  fill  prescriptions  are  required  to 
keep  them  in  a  separate  file  for  a  period  of  two  years  in  such  manner 
as  to  be  readily  accessible  to  inspection  by  investigating  officers. 

Art.  125.  Labels  on  containers. — The  dealer  filling  a  prescription 
must  affix  to  the  package  a  label  showing  the  name  and  registry 
number  of  the  dealer,  the  serial  number  of  the  prescription,  the 
name  and  address  of  the  patient,  and  the  name,  address,  and  registry 
number  of  the  person  writing  the  prescription. 

DISPENSING  BY  PRACTITIONERS. 

Art.  126.  Dispensing  by  pra.ctitioners. — Practitioners  are  permitted 
to  dispense  narcotic  drugs  to  bona  fide  patients  pursuant  to  the  legiti- 
mate practice  of  their  professions  without  prescriptions  or  order 
forms.  (See  art.  117.)  However,  a  record  of  drugs  so  dispensed 
must  be  kept  except  when  the  practitioner  is  in  personal  attendance 
upon  the  patient.  A  practitioner  is  not  regarded  as  in  personal  at- 
tendance upon  a  patient  within  the  intent  of  the  statute  unless  he  is 
in  personal  attendance  upon  such  patient  away  from  his  office.  As  to 
the  data  to  be  shown  by  the  record,  etc.,  see  article  128. 

RECORDS. 

Art.  127,  Retailers. — Retail  dealers  are  required  to  keep  on  file  du- 
plicate copies  of  order  forms  Avhereb}^  narcotic  drugs  and  prepa- 
rations are  received,  and  prescriptions  and  original  order  forms 
whereby  narcotic  drugs  are  sold  or  dispensed.  (As  to  order  forms, 
see  arts.  100  to  114;  as  to  prescriptions,  see  arts.  118  to  125.  With 
respect  to  orders  and  prescriptions  of  exempt  officials,  see  art.  44.) 

Art.  128.  Practitioners,  hospitals,  etc. — All  persons  and  institutions 
registered  as  members  of  class  4  (practitioners,  see  art  21),  whether 
they  be  physicians,  dentists,  veterinary  surgeons,  hospitals,  sana- 
toriums,  educational  institutions  having  analytical  laboratories  in  con- 
nection therewith,  dispensaries  not  connected  witli  a  Federal,  State, 
county,  or  municii:)al  institution,  welfare  bureaus,  or  charitable  insti- 
tutions of  an}^  kind  giving  treatment  in  which  a  narcotic  drug  is  nec- 
essary, are  required  to  keep  a  daily  record  showing  the  kind  and 
quantity  of  narcotic  drugs  or  preparations  dispensed  or  administered, 
the  name  and  address  of  each  pei-son  to  whom  dispensed  or  adminis- 
tered, the  name  and  address  of  the  person  upon  whose  authority  the 
narcotic  drug  or  preparation  is  dispensed  or  administered,  and  the 
])urposes  for  Avhich  it  is  dispensed  or  administered. 


54  NARCOTICS. 

Only  such  narcotic  drugs  and  preparations  as  are  personally 
administered  by  a  physician  or  other  practitioner  when  in  attend- 
ance upon  a  patient  away  from  his  office  are  exempt  from  record. 

As  to  preserving  duplicate  copies  of  order  forms  whereby  narcotic 
drugs  or  preparations  are  received,  see  article  107. 

Narcotic  drugs  or  preparations  left  with  a  nurse  in  charge  of  a 
patient,  to  be  taken  in  the  absence  of  the  practitioner,  must  be 
recorded.  (See  art.  39.)  Narcotics  sent  or  forwarded  to  chemists  for 
analysis  must  also  be  recorded. 

Art.  129.  Form  of  record. — No  special  record  form  will  be  furnished 
by  the  Government  for  the  use  of  those  registered  as  practitioners. 
Hospitals  and  institutions  shall  keep  records  in  the  manner  best  cal- 
culated to  meet  the  conditions  existing  therein.  The  record  that  is 
kept,  however,  must  enable  an  inspecting  officer  quickly  to  ascertain 
the  quantity  and  kind  of  narcotic  drugs  and  preparations  used  daily ; 
and  must  contain  the  information  indicated  in  article  128.  The 
initials  of  the  practitioner  giving  directions  for  the  administeiing 
of  a  narcotic  should  appear  on  the  patient's  record  chart,  or  separate 
prescription  giving  the  name  and  address  of  the  patient,  the  date, 
and  the  physician's  signature  or  initials  should  be  filed  with  the  phar- 
macist in  charge  of  the  drug  room  before  the  narcotic  leaves  his 
charge.  If  both  chart  and  prescription  are  used,  reference  to  the 
prescription  must  be  made  on  the  chart.  The  record  of  narcotic 
drugs  dispensed  in  a  hospital  or  other  institution  must  balance  Avith 
the  quantities  received  as  indicated  by  the  duplicate  order  forms 
on  file. 

Art.  130.  Stock  solutions. — Those  persons,  such  as  dentists,  oculists, 
aurists,  and  other  specialists  engaged  in  a  lawful  profession,  who  ad- 
minister in  their  office  practice  minute  quantities  of  narcotics,  in  the 
form  of  solutions,  may  keep  a  record  of  the  date  when  a  stock  solu- 
tion is  made  or  purchased  and  the  date  when  such  stock  solution  is 
exhausted.  Where  pastes  or  ointments  are  made  or  purchased,  a 
record  of  the  date  when  the  container  is  first  opened  and  the  date 
when  its  contents  are  exhausted  msLj  be  kej^t.  When  such  records  are 
made  it  will  not  be  necessary  to  keep  a  record  of  the  name  and  ad- 
dress of  each  patient. 

STATEMENTS. 

Sec.  3.  That  any  person  who  shall  be  registered  in  any  internal 
revenue  district  under  the  provisions  of  section  one  of  this  Act  shall, 
whenever  required  so  to  do  by  the  collector  of  the  district,  render  to 
the  said  collector  a  true  and  correct  statement  or  return,  verified  by 
affidavit,  setting  forth  the  quantity  of  the  aforesaid  drugs  received 
by  him  in  said  internal  revenue  district  during  such  ijeriod  immediately 
preceding  the  demand  of  the  collector,  not  exceeding  three  months,  as 
the  said  collector  may  fix  and  determine ;  the  names  of  the  persons 
from  whom  the  said  drugs  were  received ;  the  quantity  in  each  instance 
received  from  each  of  such  persons ;  and  the  date  when  received. 


NARCOTICS.  65 

Art.  131.  Collector  will  require  statement  whenever  he  deems  it  ad- 
visable.— A  collector  will  require  a  sworn  statement  from  any  regis- 
tered person  in  any  case  where,  from  the  number  of  order  blanks  ob- 
tained, or  from  the  character  of  the  business  carried  on,  he  has  rea- 
son to  suspect  that  narcotic  drugs  are  being  procured,  compounded, 
or  disposed  of  by  any  person  for  illegal  purposes,  and  in  any  other 
case  in  which  he  thinks  it  advisable  to  secure  such  information.  Col- 
lectors may  require  such  statements  from  manufacturers  of  and 
dealers  in  exempt  preparations  (see  arts.  139  to  148)  whenever  they 
seem  desirable. 

Art.  132.  Collector  will  furnish  blank  form. — The  statements  to  be 
furnished  in  such  cases  mu&'t  be  made  on  Form  680,  which  will  be 
supplied  by  collectors  of  internal  revenue,  and  such  statements  must 
be  sworn  to. 

TRANSPORTATION. 

Sec.  4.  That  it  shall  be  unlawful  for  any  person  who  shall  not  have 
registered  and  paid  the  special  tax  as  required  by  section  one  of  this 
Act  to  send,  ship,  carry,  or  deliver  any  of  the  aforesaid  drugs  from  any 
State  or  Territory  or  the  District  of  Columbia,  or  any  insular  posses- 
sion of  the  United  States,  to  any  person  in  any  other  State  or  Territory 
or  the  District  of  Columbia  or  any  insular  possession  of  the  United 
States :  Provided,  That  nothing  contained  in  this  section  shall  apply  to 
common  carriers  engaged  in  transporting  the  aforesaid  drugs,  or  to 
any  employee  acting  within  the  scope  of  his  employment,  of  any  person 
who  shall  have  registered  and  paid  the  special  tax  as  required  by  sec- 
tion one  of  this  Act,  or  to  any  person  who  shall  deliver  any  such  drug 
which  has  been  prescribed  or  dispensed  by  a  physician,  dentist,  or  vet- 
erinarian requii-ed  to  register  under  the  terms  of  this  Act,  who  has 
been  employed  to  prescribe  for  the  particular  patient  receiving  such 
drug,  or  to  any  United  States,  State,  county,  municipal,  District,  Ter- 
ritorial, or  insular  officer  or  official  acting  within  the  scope  of  his 
official  duties. 

Art.  133.  Transportation. — Interstate  shipment  of  narcotic  drugs 
and  ^^reparations  (other  than  the  exempt  preparations  dealt  with  in 
arts.  139  to  148)  by  persons  who  have  not  registered  and  paid  special 
tax  as  members  of  classes  1,  2,  3,  or  4  (see  arts.  6  and  21)  is,  with  cer- 
tain exceptions,  prohibited. 

Exceptions. — The  prohibition  does  not  apply  to  (1)  common  car- 
riers, (2)  employees  of  registered  i)ersons,  (3)  persons  delivering 
drugs  prescribed  or  dispensed  by  a  practitioner  to  a  bona  fide  patient, 
and  (4)  exempt  officials.  As  to  employees,  see  articles  37  and  38.  As 
to  prescriptions  and  dispensing  by  practitioners,  see  articles  115  to 
126.     As  to  exempt  officials,  see  articles  41  to  48. 

INSPECTIONS. 

Sec.  5.  That  the  duplicate  order  forms  and  the  prescriptions  re- 
quired to  be  preserved  under  the  provisions  of  section  two  of  this  Act, 
and  the  statements  or  returns  filed  in  the  office  of  the  collector  of  the 


56  NARCOTICS. 

district,  under  tlie  provisions  of  section  tliree  of  this  Act,  shall  be  open 
to  inspection  by  officers,  agents,  and  employees  of  the  Treasury  Depart- 
ment duly  authorized  for  that  purpose ;  and  such  officials  of  any  State 
or  Territory,  or  of  any  organized  municipality  therein,  or  of  the  District 
of  Columbia,  or  any  insular  possession  of  the  United  States,  as  shall  be 
charged  with  the  enforcement  of  any  law  or  municipal  ordinance  regu- 
lating the  sale,  prescribing,  dispensing,  dealing  in,  or  distribution  of 
the  aforesaid  drugs.  Each  collector  of  internal  revenue  is  hereby 
authorized  to  furnish,  upon  written  request,  certified  copies  of  any  of 
the  said  statements  or  returns  filed  in  his  office  to  any  of  such  officials 
of  any  State  or  Territory  or  organized  nmnicipality  therein,  or  the 
District  of  Columbia,  or  any  insular  possession  of  the  United  States,  as 
shall  be  entitled  to  inspect  the  said  statements  or  returns  filed  in  the 
office  of  the  said  collector,  upon  the  payment  of  a  fee  of  $1  for  each  one 
hundred  words  or  fraction  thereof  in  the  copy  or  copies  so  requested. 
Any  person  who  shall  disclose  the  information  contained  in  the  said 
statements  or  returns  or  in  the  said  duplicate  order  forms,  except  as 
herein  expressly  provided,  and  except  for  the  pun^ose  of  enforcing  the 
provisions  of  this  Ac4,  or  for  the  purpose  of  enforcing  any  law  of  any 
State  or  Territory  or  the  District  of  Columbia,  or  any  insular  posses- 
sion of  the  United  States,  or  ordinance  of  any  organized  municipality 
therein,  regulating  the  sale,  prescribing,  dispensing,  dealing  in,  or  dis- 
tribution of  the  aforesaid  drugs,  shall,  on  conviction,  be  fined  or  im- 
prisoned as  provided  by  section  nine  of  this  Act.  And  collectors  of 
internal  revenue  are  hereby  authorized  to  furnish  upon  written  request, 
to  any  person,  a  certified  copy  of  the  names  of  any  or  all  persons  who 
may  be  listetl  in  their  respective  collection  districts  as  special  tax 
payers  under  the  provisions  of  this  Act,  upon  payment  of  a  fee  of  $1  for 
each  one  hundred  names  or  fraction  thereof  in  the  copy  so  requested. 

Art.  134.  Eecords  open  to  inspection. — Duplicate  order  forms  and 
prescriptions  required  to  be  kept  on  file  (see  arts.  107,  119,  and  124) 
must  be  kept  so  that  tliey  can  be  readily-  inspected  by  officers  of  the 
Treasury  Department  of  the  United  States  or  by  authorized  officers 
of  the  Government  of  the  State,  Territory,  District  of  Columbia, 
organized  municipality,  or  insular  possession,  in  which  the  person" 
keeping  the  records  is  located.  Persons  failing  to  comply  with  this 
requirement  are  liable  as  indicated  by  sec.  9  of  the  statute,  and 
article  153  of  the  regidations. 

Art.  135.  Procedure  by  officers. — It  will  be  the  duty  of  collectors, 
deputy  collectors,  agents,  and  other  authorized  internal  revenue  offi- 
cers to  visit  the  premises  of  all  persons,  firms,  or  companies  regis- 
tered under  the  act,  or  where  they  have  reason  to  believe  narcotic 
drugs  are  stored,  and  to  see  that  all  requirements  of  the  law  and  the 
regidations  issued  under  authority  thereof  are  strictly  complied 
with  (see  sec.  3177,  R.  S.).  They  will,  when  necessary,  inspect  and 
check  such  records,  orders,  prescriptions,  statements,  and  returns 
made  or  received.  Any  violations  of  law  discovered  shall  be  at  once 
reported  to  the  Commissioner  of  Internal  Revenue. 

Art.  136.  Samples  to  be  taken. — Wlicre  unstamped  packages  sus- 
pected of  containing  narcotic  drugs  or  preparations  subject  to  tax 


NARCOTICS.  57 

are  found,  samples  of  their  contents  should  be  immediately  procured, 
and,  after  being  properly  labeled  and  identified  as  required  by  T.  D. 
1587,  forwarded  to  the  Division  of  Technology,  Office  of  the  Com- 
missioner of  Internal  Revenue,  for  analysis. 

Art.  137.  Unnecessary  interference  prohibited. — Officers  will  con- 
duct their  investigations  in  such  manner  as  not  to  annoy  or  interfere 
unnecessarily  with  the  affairs  of  persons  whose  businesses  are  sub- 
jected to  examination.  Nevertheless  investigations  should  be  careful 
and  thorough,  and  every  reasonable  effort  to  uncover  possible  viola- 
tions of  law  should  be  made. 

Art.  138.  Improper  disclosures. — Any  investigating  officer  who  dis- 
closes information  obtained  from  the  records  required  to  be  kept 
under  the  provisions  of  this  act,  except  for  the  purpose  of  enforcing 
such  act  or  a  State  or  other  statute  enacted  for  the  purpose  of  con- 
trolling the  traffic  in  narcotic  drugs,  will  incur  liability  to  be  fined 
not  more  than  $2,000  or  imprisoned  not  more  than  five  years  or  both. 
(See  art.  153.) 

Any  internal  revenue  officer  who  makes  any  unauthorized  dis- 
closure will  be  dismissed  from  the  service. 

EXEMPT  PREPARATIONS. 

Sec.  6.  That  the  provisions  of  this  Act  shall  not  be  construed  to 
apply  to  the  manufacture,  sale,  distribution,  giving  away,  dispens- 
ing, or  possession  of  pi-eparations  and  remedies  which  do  not  contain 
more  than  two  grains  of  opium,  or  more  than  one-fourth  of  a  grain  of 
morphine,  or  more  than  one-eighth  of  a  grain  of  heroin,  or  rnore  than 
one  grain  of  codeine,  or  any  salt  or  derivative  of  any  of  them  in  one 
fluid  ounce,  or,  if  a  solid  or  semisolid  preparation,  in  one  avoirdupois 
ounce ;  or  to  liniments,  ointments,  or  other  preparations  which  are  pre- 
pared for  external  use,  only,  except  liniments,  ointments,  and  other 
preparations  which  contain  cocaine  or  any  of  its  salts  or  alpha  or  beta 
eucaine  or  any  of  their  salts  or  any  synthetic  substitute  for  them : 
Provided,  That  such  remedies  and  preparations  are  manufactured, 
sold,  distributed,  given  away,  dispensed,  or  possessed  as  medicines  and 
not  for  the  purpose  of  evading  the  intentions  and  provisions  of  this 
Act:  Provided  further,  That  any  manufacturer,  producer,  compounder, 
or  vendor  (including  dispensing  physicians)  of  the  preparations  and 
remedies  mentioned  in  this  section  shall  keep  a  record  of  all  sales, 
exchanges,  or  gifts  of  such  preparations  and  remedies  in  such  manner 
as  the  Conmiissioner  of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  shall  direct.  Such  record  shall  be  pre- 
served for  a  period  of  two  years  in  such  a  way  as  to  be  readily  acces- 
sible to  inspection  by  any  officer,  agent  or  employee  of  the  Treasury 
Department  duly  authorized  for  tliat  purpose,  and  the  State,  Terri- 
torial, District,  municipal,  and  insular  oflicers  named  in  section  .5  of 
this  Act,  and  every  such  person  so  possessing  or  disposing  of  such 
preparations  and  remedies  shall  register  as  required  in  section  1  of  this 
Act  and,  if  he  is  not  paying  a  tax  under  this  Act,  he  shall  pay  a  si>ecial 
tax  of  $1  for  each  year,  or  fractional  part  thereof,  in  which  he  is  en- 


58  NAKCOTICS. 

gaged  in  such  occupatiou,  to  the  collector  of  internal  revenue  of  the 
district  in  which  he  carries  on  such  occupation  as  pi'ovided  in  this 
Act.  The  provisions  of  tills  Act  as  amended  shall  not  apply  to  deco- 
caiuized  coca  leaves  or  preparations  made  thei'efroni,  or  to  other  prepa- 
rations of  coca  leaves  which  do  not  contain  cocaine. 

Akt.  139.. Registration. — ^ISIanufacturers  of  and  dealers  in  exempt 
preparations  are  required  to  register  as  such  whether  liable  to  tax 
in  that  capacity  or  not  (as  to  tax  liability,  see  art.  140).  The  direc- 
tions with  respect  to  registration  contained  in  articles  6  to  11  and  13 
to  15  are  applicable  to  persons  required  to  register  as  manufacturers 
of  and  dealers  in  exempt  preparations,  except  that  persons  paying 
tax  as  members  of  classes  1  to  4  inclusive  are  not  required  to  make 
an  additional  remittance  on  account  of  the  manufacture  or  sale  of 
exempt  preparations. 

Peddling. — Exempt  preparations  like  other  narcotic  drugs  and 
preparations  may  be  sold  only  at  or  from  registered  places  of  busi- 
ness.    (See  art.  36.) 

Art.  140.  Tax  liability. — Manufacturers  of  and  dealers  in  exempt 
preparations  are,  except  as  shown  below,  required  to  pay  a  tax  of 
$1  per  annum  for  each  tax  year  during  the  whole  or  any  part  of 
which  business  is  done.  The  tax  year  extends  from  July  1  to  June 
30.  One  who  is  in  business  for  only  a  part  of  a  year  is,  nevertheless, 
required  to  pay  the  full  sum  of  $1.     (See  art.  18.) 

Exception. — One  who  pays  any  of  the  other  special  or  occupa- 
tional taxes  (see  art.  21)  is  not  also  required  to  pay  the  tax  herein 
dealt  with  on  account  of  the  manufacture  of  or  dealing  in  exempt 
preparations. 

Art.  141.  Scope  of  the  law. — The  section  of  the  law  last  quoted  has 
the  effect  of  conditionally  exempting  from  liability  under  the  other 
sections  of  the  act  persons  manufacturing  and  dealing  in  certain 
narcotic  preparations  or  remedies.  Such  persons  are  not,  however, 
totally  exempt  from  any  and  all  provisions  of  the  entire  act,  but  are 
subject  to  certain  requirements  laid  down  in  section  6.  (See  arts.  138 
to  149.)  In  order  for  the  exemption  to  apply  at  all  (1)  the  prepara- 
tion must  not  contain  more  than  2  grains  of  opium  or  more  than 
one- fourth  of  a  grain  of  morphine,  or  more  than  one-eighth  of  a 
grain  of  heroin,  or  more  than  1  grain  of  codeine,  or  any  salt  or  de- 
rivative of  any  of  them  in  1  fluid  ounce;  or,  if  a  solid  or  semisolid 
preparation,  in  1  avoirdupois  ounce,  or  must  be  for  external  use 
(see  arts.  142  and  143)  ;  (2)  the  manufacturer  or  dealer,  as  the  case 
may  be,  must  manufacture  or  deal  in  the  preparation  as  a  medicine 
and  not  for  the  purpose  of  evading  the  provisions  or  intentions  of 
the  act;  and  (3)  the  person  claiming  exemption  must  keep  such 
record  of  sales,  etc.,  as  the  Commissioner  of  Internal  Revenue  and  the 
Secretary  of  the  Treasury  shall  direct  (see  art.  148). 


NARCOTICS.  59 

Art.  142.  Exempt  preparations — Internal. — The  exemption  applies 
only  to  ready-made  preparations  and  remedies  compounded  in  ac- 
cordance with  the  United  States  Pharmacopoeia,  National  For- 
mulary, or  other  recognized  or  established  formula  usually  carried  in 
stock  by  a  dealer  and  sold  without  a  prescrij)tion.  The  preparation 
must  contain  active  medicinal  drugs  other  than  narcotics  in  sufficient 
proportion  to  confer  upon  the  preparation  valuable  medicinal  quali- 
ties other  than  those  possessed  by  the  narcotic  drugs  alone.  Simple 
dilutions  of  a  narcotic  drug  made-  by  admixture  with  inert  or  nearly 
inert  substances,  as,  for  instance,  sugar  of  milk,  or  simple  solutions 
of  narcotic  drugs  in  water,  sirup,  dilute  alcohol,  flavoring  matter,  etc., 
are  not  within  the  exemption.  A  preparation,  to  be  exempt,  must 
not  contain  more  than  one  of  the  several  narcotic  alkaloids,  salts,  or 
derivatives  of  opium.  A  preparation  which  contains  the  permitted 
maximum  quantity  of  any  one  of  the  various  alkaloids,  salts,  or  de- 
rivatives, if  fortified  by  the  addition  of  any  of  the  other  alkaloids  or 
salts  or  derivatives,  is  not  within  the  exemption. 

Art.  143.  Exempt  preparations — External. — ^There  is  no  limitation 
upon  the  percentage  of  narcotic  drugs  external  preparations  may 
contain.  In  order  to  be  within  the  exemption  (see  art.  141)  a 
preparation  for  external  use,  containing  more  than  the  maximum 
percentage  of  narcotic  drugs  specified  in  article  141  must  contain 
ingredients  rendering  it  unfit  for  internal  administration;  in  other 
words,  it  must  be  denatured,  and  the  package  must  be  prominently 
marked  to  show  the  contents  to  be  j)oisonous  if  taken  internally. 

Use  for  aural,  nasal,  ocular,  rectal,  uretln-al,  or  vaginal  j)urposes  is 
not  regarded  as  external  use  and,  therefore,  preparations  manufac- 
tured or  used  for  such  purposes  containing  more  than  the  percentages 
of  narcotic  drugs  indicated  in  article  141  are  not  within  the  exemption. 

Art.  144.  Paregoric. — Camphorated  tincture  of  opium  (paregoric) 
prepared  according  to  the  United  States  Pharmacopoeia  standard 
contains  not  quite  two  gi'ains  of  opium  to  the  fluid  ounce  and  is, 
therefore,  Avithin  the  exemption. 

Art.  145.  Prescriptions  unnecessary. — Preparations  or  remedies 
which  are  within  the  exemption  (see  arts.  141  to  144)  may  be  sold 
with  or  without  prescriptions,  and  a  prescription  for  such  a  prepara- 
tion may  be  refilled  (see  art.  120)  provided,  of  course,  the  prepara- 
tion is  furnished  in  good  faith  for  medicinal  purposes  only.  The 
refilling  of  narcotic  ^prescriptions  calling  for  a  mixture  consisting 
of  an  exempt  preparation  or  remedy  further  diluted  by  the  addi- 
tion of  non-narcotic  medicinal  agents  is  likewise  permissible. 

Art.  146.  Private  formulae. — A  mixture  containing  not  more  than 
the  exempted  percentage  of  narcotic  drugs  made  up  pursuant  to  a 
private  formula  of  a  physician  upon  retiuest  of  the  physician  that  the 
druggist  keep  a  quantity  of  the  mixture  on  hand  in  order  that  the 


60 


NARCOTICS. 


physician  may  describe  it  in  his  prescriptions  as  his  *'  special  mix- 
ture "  is  not  a  ready-made  preparation  or  remedy  compounded  in 
accordance  with  the  "  U.  S.  P.,"  "  N,  F.,"  or  other  recognized  or  es- 
tablished formula  (see  art.  142)  and  is  therefore  not  within  the 
exemption. 

Art.  147.  Order  forms. — Orders  for  exempt  preparations  are  not  re- 
quired to  be  on  any  particular  forms,  but  an  order  from  a  dealer 
shall  not  be  honored  by  a  manufacturer  or  other  dealer  unless  it 
bears  the  registry  number  of  the  dealer  giving  the  order. 

Where  orders  for  exempt  preparations  are  taken  by  a  traveling 
salesman  the  salesman  shall  ascertain  the  registry  number  of  the 
purchaser.  The  order  shall  not  be  filled  by  the  manufacturer  or 
vendor  until  he  is  advised  what  the  jjurchaser's  registry  number  is. 

Art.  148.  Records. — Every  manufacturer,  producer,  compounder, 
or  vendor  (including  dispensing  physicians)  of  exempt  preparations 
must  keep  a  record  of  all  sales,  exchanges,  gifts,  etc.,  the  entries  to  be 
made  at  the  time  of  delivery.  Records  must  be  kept  whether  liability 
to  tax  as  a  manufacturer  of  or  dealer  in  exempt  preparations  is  in- 
curred or  not.  (See  art.  140.)  This  recorcl  must  show  the  name, 
address,  and  registry  number  of  the  dealer  to  whom  the  preparation 
cr  remedy  is  sold,  exchanged,  or  given,  the  name  and  quantity  of 
the  preparation  or  remedy,  and  the  date  upon  which  delivery  to  the 
purchaser  or  his  agent  or  the  carrier  is  made.  A  separate  record  must 
also  be  kept  of  sales,  etc.,  to  persons  other  than  dealers,  including 
sales  pursuant  to  prescription,  bearing  the  signature  of  the  person  to 
whom  the  preparation  or  remedy  is  sold,  exchanged,  or  given,  made 
at  the  time  of  delivery,  his  address,  the  name  and  quantity  of  the 
preparation  or  remedy,  and  the  date  of  delivery.  The  Government 
does  not  furnish  blanks  for  the  keeping  of  these  records,  but  they 
should  be  in  the  following  forms : 


Form  0 

f  record  i 

U)  Be  kept  hy  manufacturers,  etc.,  of,  or  wholesale  dealers  in, 
untaxed  narcotic  preparations  and  remedies. 

Date  of 

sale. 

Registra- 
tion No. 
of  person 
to  whom 
sold. 

Name  of  purchaser. 

Address. 

Name  of  preparation 
cr  remedy. 

Quantity. 

1 

Form  0 

f  record  to  he  Jcept  b 

//  retail  dealers  in  untaxed  narcotic  preparations 
and  remedies. 

Date  of 
sale. 

Signature  of  purchaser. 

Address. 

Name  of  preparation. 

Quantity. 

NARCOTICS,  61 

GENERAL  PROVISIONS. 

Sec.  7.  That  all  laws  relating  to  the  assessment,  collection,  remis- 
sion, and  refimd  of  internal  revenue  taxes  including  section  thirty-two 
hundred  and  twenty-nine  of  the  Revised  Statutes  of  the  United  States, 
so  far  as  applicable  to  and  not  inconsistent  with  the  provisions  of  this 
Act,  are  hereby  extended  and  made  applicable  to  the  special  taxes  im- 
posed by  this  Act. 

Art.  149.  Compromise. — Section  3229,  Revised  Statutes,  provides  in 
part : 

The  Commissioner  of  Internal  Revenue,  with  the  advice  and  consent 
of  the  Secretary  of  the  Treasury,  may  compromise  any  civil  or  criminal 
case  arising  under  the  internal-revenue  laws  instead  of  commencing 
suit  thereon ;  and,  with  the  advice  and  consent  of  the  said  Secretary 
and  the  recommendation  of  the  Attorney  General,  he  may  compromise 
any  such  case  after  a  suit  thereon  has  been  commenced. 

Persons  guilty  of  wilful  violation  of  the  provisions  of  the  act  of 
December  17, 1914,  will  not  be  permitted  to  compromise  their  offenses. 
(See  art.  153.) 

Art.  150,  Redemption  of  stamps. — Authority  for  the  redemption  of 
stamps,  under  certain  circumstances,  is  conferred  by  the  act  of  May 
12,  1900  (31  Stat.,  177),  as  amended  by  the  act  of  June  30,  1902  (32 
Stat.,  506). 

Unused  narcotic  stamps  may  be  redeemed  through  claim  executed 
on  Form  46,  presented  by  the  owner,  or  his  authorized  representa- 
tive, accompanied  by  the  stamps.  Such  claim  should  show  that  the 
claimant  is  the  owner  of  the  stamps  presented,  that  they  were  pur- 
chased from  the  Government  within  two  years  of  the  date  of  the 
filing  of  the  claim,  and  that  the  stamps  are  unused,  explaining  any 
cancellation  or  appearance  of  having  been  used. 

In  case  of  stamps  affixed  in  error  to  articles  not  taxable  or  in  ex- 
cess to  taxable  articles,  the  claim  should  be  accompanied  by  the 
stamps,  which  should  be  detached  in  the  presence  of  a  deputy  col- 
lector, or,  if  they  can  not  be  detached,  a  showing  of  that  fact  should 
be  made,  supported  by  the  deputy  collectors  certificate  evidencing 
their  mutilation,  destruction,  or  obliteration  by  him. 

Art.  151,  Other  provisions. — With  respect  to  other  provisions  of  the 
Revised  Statutes  which  are  applicable,  see  article  53. 

UNLAWFUL  POSSESSION. 

Sec.  8.  That  it  shall  he  unlawful  for  any  person  not  registered 
under  the  provisions  of  this  Act,  and  who  has  not  paid  the  spwlal 
tax  provided  for  by  this  Act,  to  have  in  his  possession  or  under  his 
control  any  of  the  aforesaid  drugs ;  and  such  possession  or  control 
shall  be  presumptive  evidence  of  a  violation  of  this  section,  and  also 
of  a  violation  of  the  provisions  of  section  one  of  this  Act:  Provided, 
That  this  section  shall  not  apply  to  any  employee  of  a  registered  per- 


62  NARCOTICS. 

son,  or  to  a  nurse  under  the  supervision  of  a  physician,  dentist,  or 
veterinary  surgeon  registered  under  this  Act,  having  such  possession 
or  control  by  virtue  of  his  employment  or  occupation  and  not  on 
his  own  account ;  or  to  the  possession  of  any  of  the  aforesaid  drugs 
which  has  or  have  been  prescribed  in  good  faith  by  a  physician, 
dentist,  or  veterinary  surgeon  registered  under  this  Act ;  or  to  any 
United  States,  State,  county,  municipal.  District,  Territorial,  or  in- 
sular officer  or  official  who  has  possession  of  any  said  drugs,  by  reason 
of  his  official  duties,  or  to  a  warehouseman  holding  possession  for  a 
person  registered  and  who  lias  paid  the  taxes  under  this  Act ;  or  to 
common  carriers  engaged  in  transporting  such  drugs :  Provided  further, 
That  it  shall  not  be  necessary  to  negative  any  of  the  aforesaid  ex- 
emptions in  any  complaint,  information,  indictment,  or  other  writ  or 
proceeding  laid  or  brought  under  this  Act ;  and  the  burden  of  proof 
of  any  such  exemption  shall  be  upon  the  defendant. 

Art.  152.  References — Possession. — As  to  possession  of  unstamped 
packages  containing  narcotic  drugs,  see  article  80. 

Employees. — With  respect  to  employees,  see  article  38. 

Nurses. — In  regard  to  nurses,  see  article  39. 

Eccempi  officials. — As  to  officials  of  the  Government  of  the  United 
States,  etc.,  see  articles  41  to  48. 

PUNISHMENT. 

Sec.  9.  That  any  person  who  violates  or  fails  to  comply  with  any 
of  the  requirements  of  this  Act  shall,  on  conviction,  be  fined  not  more 
than  $2,000  or  be  imprisoned  not  more  than  five  years,  or  both,  in  the 
discretion  of  the  court. 

Art.  153.  Rigorous  enforcement. — Persons  who  violate  the  narcotic 
law  or  fail  to  fulfill  its  requirements  in  any  particular  are  liable  to 
punishment,  the  maximum  liability  being  to  be  fined  not  more  than 
$2,000  or  to  be  imprisoned  for  not  more  than  five  years,  or  both. 
Wilful  violation  of  the  internal  revenue  legislation  covering  the  traf- 
fic in  narcotic  drugs  will,  in  no  case,  be  condoned  merely  because  the 
amount  of  revenue  involved  is  small.  It  is  desired  that  revenue  of- 
ficers. United  States  attorneys,  etc.,  will  be  more  than  ordinarily 
zealous  in  endeavoring  to  secure  the  adequate  punishment  of  persons 
guilty  of  such  offenses,  and  that  private  citizens  will  cooperate  by 
furnishing  information,  etc.,  whenever  they  can  do  so. 

SEIZURES. 

Section  1008  of  the  Revenue  Act  of  1918 : 

"  That  all  opium,  its  salts,  derivatives,  and  compounds,  and  coca 
leaves,  salts,  derivatives,  and  compounds  thereof,  which  may  now  be 
under  seizure  or  which  may  hereafter  be  seized  by  the  United  States 
Government  from  any  person  or  persons  charged  with  any  violation  of 
the  Act  of  October  1,  1890,  as  amended  by  the  Acts  of  Rlarch  .3,  1897, 
February  9.  1909,  and  January  17,  1914,  or  the  Act  of  December  17, 
1914,   shall   upon    conviction   of   the   person   or   persons   from    whom 


NARCOTICS.  63 

seized  be  confiscated  by  and  forfeited  to  the  United  States;  and  the 
Secretary  is  hereby  authorized  to  deliver  for  medical  or  scientific  pur- 
poses to  any  department,  bureau,  or  other  agency  of  the  United  States 
Government,  upon  proper  application  therefor  under  such  regulation  as 
may  be  prescribed  by  the  Commissioner,  with  the  approval  of  the 
Secretary,  any  of  the  drugs  so  seized,  confiscated,  and  forfeited  to 
the  United  States. 

"  The  provisions  of  this  section  shall  also  apply  to  any  of  the  aforesaid 
drugs  seized  or  coming  into  the  possession  of  the  United  States  in  the 
enforcement  of  any  of  the  above-mentioned  Acts  where  the  owner  or 
owners  thereof  are  unknown.  None  of  the  aforesaid  drugs  coming  into 
possession  of  the  United  States  under  the  operation  of  said  Acts,  or 
the  provisions  of  this  section,  shall  be  destroyed  without  certification 
by  a  committee  appointed  by  the  Commissioner,  with  the  approval  of 
the  Secretary,  that  they  are  of  no  value  for  medical  or  scientific  pui'- 
poses." 

Art.  154.  Reports. — Each  collector  and  revenue  agent  is  required  to 
submit  a  report  to  the  Commissioner  of  Internal  Revenue  at  the  close 
of  each  month  showing  the  quantity  of  narcotic  drugs  coming  into 
his  possession  during  that  month,  and  at  the  end  of  each  quarter  the 
collector  shall  ship  such  of  the  drugs  as  have  been  forfeited  to  the 
United  States  in  his  district,  by  express,  to  the  Division  of  Tech- 
nology, Office  of  the  Commissioner  of  Internal  Revenue,  on  a  Gov- 
ernment bill  of  lading.     (See  also  art.  80.) 

AUTHORITY  FOR  REGULATIONS. 

Section  i.  *  *  *  The  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury,  shall  make  all  needful 
rules  and  regulations  for  carrying  the  provisions  of  this  Act  into  effect. 

Art.  155.  Promulgation  of  regulations. — In  pursuance  of  the  statute 
the  foregoing  regulations  are  hereby  made  and  promulgated  and  all 
rulings  inconsistent  herewith  are  hereby  revoked. 

Daniel,  C.  Roper, 
Commissioner  of  Internal  Revenue. 
Approved,  November  24,  1919 : 
Carter  Glass, 

Secretary  of  the  Treasury. 


APPENDIX. 


The  following  list  of  collection  districts,  with  the  address  of  each  of  the 
several  collectors  of  Internal  revenue,  is  furnished  for  the  information  of 
persons  registering  under  the  foregoing  regulations. 

In  addressing  letters  to  collectors,  the  title  of  their  office  and  their  post-office 
address,  as  given  in  the  list,  will  be  sufficient.  All  remittances  for  special 
taxes  or  for  purchase  orders  should  be  in  currency,  money  orders,  or  certified 
checks  on  national  or  State  banks. 

Ldst  of  collection  Mstricts  and  addresses  of  collectors  of  internal  revenue. 


District. 


Collector's  office. 


Alabama « 

Alaska.    (See  Washington.) 

Arizona 

Arkansn  s 

California  ( first  district ) 

The  counties  of  Alameda,  Alpine,  Amador,  Butte,  Calaveras,  Colusa,  Contra 
Costa,  Del  Norte,  Eldorado,  Fresno,  Glenn,  Biunboldt,  Inyo,  Ivings, 
Lake,  Lassen,  Madera,  Marin,  Mariposa,  Menlocino,  Merced,  Modoc, 
Mono,  Monterey,  Napa,  Nevada,  Placer,  Plumas,  Sacramento.  Srn 
Benito,  San  Francisco,  San  Joaquin,  Sen  Mateo,  Santa  Clara,  Santc  Cruz, 
Shasta,  Sierra,  Siskivou,  Solano,  Sonima,  Stanislaus,  Sutter,  Tehama, 
Trinity,  Tuhre,  Touliimne,  Yolo,  Yuba,  and  tiie  State  of  Nevada. 

California  (sisth  district) 

The  counties  of  Imperial.  Kern,  Los  An;eles,  Orange,  Riverside,  Sen  Ber- 
n.irdino,  San  Diejo,  San  Luis  Obispo,  Santa  Barbara,  and  Ventura. 

Colorado 

Connecticut 

Delaware 

District  of  Columbia  (see  Maryland) 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois  (first  district) 

Theeountiesof  Boone,  Bureau,  Carroll,  Cook,  Dekalb,  Dapage,  Grundy, 
Ilenierson,  Henry,  Jo  Daviess,  Kane,  Kankakee,  Kendall,  Knox.  Lake, 
La  SaJle,  Lee,  McHenry,  Marshall,  Mercer,  Ogle,  Peoria,  Putnam,  Rhode 
Island,  St.irk,  Stephenson,  Warren,  Whiteside,  Will,  and  Winnebago. 

Illinois  (eighta  district) 

Theeountiesof  Adams,  Alexander,  Bond,  Brown,  Calhoun,  Cass.Champaic.n, 
Christian,  Clark,  Clay,  Clinton,  Coles,  Crawford,  Cumberland.  Dewitt, 
Do  nlas,  Edgir,  Edwards,  Effln'itham,  Fayette,  Franklin,  Ford,  Fulton 
Gallatin,  Greene,  Hamilton,  Hancock,  Hardin,  Iroquois,  Jackson.  Jasper, 
Je.lerson,  Jersey,  Johnson,  Lawrence,  Livinjston,  Logan,  McDonouqh, 
McLean,  Macon,  Macoupin,  Madison,  Marion,  Mason.  Massac,  Menard, 
Monroe,  Mont^omerv,  Morgan,  Moultrie,  Perry,  Piatt,  Pike,  Pope, 
Pulaski,  Randolph,  Richland,  St.  Clair,  Saline,  Sangamon,  Schuyler, 
Scott,  Shelby,  Tazewell,  Union,  Vermilion,  Wabash,  Washington, 
WajTie,  White,  Williamson,-and  Woodford. 

Indiana  (sixth  district) 

Iowa  (tliird  district) 

Kansas 

Kent  ucky 

Louisi;ma 

Maine 

Maryland  (includes  District  of  Columbia,  and  the  counties  of  Accomac  and 
Northampton  of  the  State  of  Virginia). 

Massachusetts 

Miclu','an  ( first  distri  -t ) 

The  counties  of  Aleona,  Alpenx,  Arenac,  Bay,  Branch,  Calhoun,  Cheboygan, 
Clare,  CUnton,  Crawford,  Genesee,  Gladwin,  Gratiot,  Hillsdale,  Huron, 
Ingham,  Ios3o,  Isabella,  Jackson,  Lapeer,  Lenawee,  Livingston.  Macomb, 
Midland,  Monroe,  Montmorency,  Oakland,  0;cmaw,  Oscoda,  Otsego, 
Presque  Isle,  Roscommon,  Saginaw,  Sanilac,  Shiawassee,  St.Clair, Tuscola, 
Washtenaw,  and  Wayne. 


Birmingham. 

Phoenix. 
Little  Rock. 
San  Francisco. 


Los  Angeles. 


Denver. 

Hartford. 

Wilmington. 

Baltimore. 

Jacksonville. 

Atlanta. 

Honolulu. 

Boise. 

Chicago. 


SpringfieKL 


Indianapolis. 

Dubuque. 

Wichita. 

Louisville. 

New  Orleans. 

Augusta. 

Baltimore. 

Boston. 
Detroit. 


65 


66  NARCOTICS. 

List  of  collection  districts  and  addresses  of  collectors  of  internal  revenue — Con. 


District. 


Michigan  (fourth  district) 

The  counties  of  Al'jer,  Allegan,  Antrim,  Baraga,  Barrv,  Benzie,  Berrien.Cass, 
Charlevoix,  Chippewa,  Delta,  Dickinson,  Eaton,  Emmet,  Gogebic,  Grand 
Traverse,  Houghton,  Ionia,  Iron,  Kalamazoo,  KaUcaska,  Kent,  Keweenaw, 
Lake,  Leelanau,  Luce,  Mackinac,  Manistee,  Marquette,  Mason,  Mecasta, 
Mennminee,  Missaukee,  Montcalm,  Mr.skeron,  Newaygo,  Oceana,  Onto- 
nagon, Osceola,  Ottawa,  St.  Joseph,  Schoolcraft,  Van  Buren,  AVexford. 

Minnesota 

Mississippi 

Missouri  ( first  district) 

The  counties  of  Adair,  Audrain,  Bollinger,  Boone,  Butler,  Callaway,  Cape 
Girardeau,  Carter,  Clark,  Crawford,  Dent,  Dimklin,  Franklin,  Gasconade, 
Howard,  Iron,  Jefferson,  Knox,  Lewis,  Lincoln,  Linn,  Macon,  Madison, 
Maries,  Marion,  Mississippi,  Montgomery,  Monroe,  New  Madrid,  Oregon, 
Osage,  Pemiscot. Perry, Phelps, Pike, Pidaski,  Ralls,  Randolph,  Reynolds, 
Rinley,  St.  Charles,  St.  Francois,  Ste.  Genevieve,  St.  Louis,  Schuyler,  Scot- 
land, Scott,  Shannon,  Shelby,  Stoddard,  Warren,  Washington,  and  WajTie. 

Missouri  (sixth  district) 

The  counties  of  Andrew,  Atchison,  Barry,  Barton,  Bates,  Benton, 
Buchanan,  Caldwell,  Camden,  Carroll,  Cass,  Cedar,  Charlton,  Christian, 
Clay,  Clinton,  Cole,  Cooper,  Dade,  Dallas,  Daviess,  Dekalb,  Douglas,  Gen- 
try, Greene,  Grundy,  Harrison,  Henry,  Hickory,  Holt,  Howell,  Jackson, 
Jasper,  Johnson,  Laclede,  Lafayette,  Lawrence,  Livingston,  McDonald, 
Mercer,  Miller,  Moniteau,  Morgan,  Newton,  Nodaway,  Ozark,  Pettis, 
Platte,  Polk,  Putnam,  Ray,  St.  Clair,  Saline,  Stone,  Sullivan,  Taney, 
Texas,  Vernon,  Webster,  Worth,  and  Wright. 

Montana 

Nebraska 

Nevada.    (See  First  California.) 

New  Hampshire 

New  Jersey  (first  district) 

The  coimties  of  Atlantic,  Burlington,  Camden,  Cape  May,  Cumberland, 
Gloucester,  Mercer,  Monmouth,  Ocean,  and  Salem. 

New  Jersey  (fifth  district) 

The  coimties  of  Bergen,  Essex,  Hudson,  Himterdon,  Middlesex,  Morris, 
Passaic,  Somerset,  Sussex,  Union,  and  Warren. 

New  Mexico 

New  York  (first  district) 

The  counties  of  Kings,  Nassau,  Queens,  Riclunond,  and  Suffolk. 

New  York  (second  district) 

The  first,  second,  third,  fourth,  fifth,  sixtli,  eighth,  ninth,  and  fifteenth  wards 
of  New  York  City;  that  portion  of  the  fourteenth  ward  lying  west  of  the 
center  of  Mott  Street;  that  portion  of  thesLxteenth  ward  lying  south  of  the 
center  of  West  Twenty-fourth  Street  and  Governors  Island. 

New  York  (third  district) 

The  seventh,  tenth,  eleventh,  twelfth,  thirteenth,  seventeenth,  eighteenth, 
nineteenth,  twentieth,  twenty-first,  and  twenty-second  wards  of  New 
York  City;  that  part  ofthe  fourteenth  ward  lying  east  of  the  center  of  Mott 
Street;  that  part  ofthe  sixteenth  ward  lying  north  ofthe  center  of  West 
Twenty-fourth  Street,  and  Blackwells,  Eandals,  and  Wards  Islands. 

New  York  ( fourteenth  district) 

The  counties  of  Albany,  Clinton,  Columl  lia,  Dutchess,  Essex,  Fulton,  Greene, 
Hamilton,  Montgoniery,  Orange,  Putnam,  Rensselaer,  Rockland,  Saratoga, 
Schenectady,  Schoharie,  Sullivan, Ulster,  Warren,  Washington, and  West- 
chester, and  the  twenty-third  and  twenty- fourth  wards  of  New  York  City. 

New  York  (twenty-first  district) 

The  coimties  of  Broome,  Cayuga,  Clienango,  Cortland,  Delaware,  Franklin, 
Herkimer,  Jefferson,  Lewis,  Madison,  Oneida,  Onondaga,  Oswego,  Otsego, 
St.  Lawrence,  Schuyler,  Seneca,  Tioga,  Tompkins,  and  Wayne. 

New  York  (twenty-eighth  district) 

The  counties  of  Allegany,  Cattaraugus,  Chautauqua,  Chemung,  Erie,  Gen- 
esee, Livingston,  Monroe,  Niagara,  Ontario,  Orleans,  Steuben,  Wyoming, 
and  Yates. 

North  Carolina  (fourth  district) 

North  Dakota 

Ohio  (first  district) 

The  counties  of  Brown,  Butler,  Clarke,  Clermont,  Clinton,  Fayette,  Greene, 
Hamilton  Highland,  Miami,  Montgomery,  Preble,  and  Warren. 

Ohio  (tenth  district) 

The  counties  of  Allen,  Auglaize,  Champaign,  Crawford,  Darke,  Defiance, 
Erie,  Fulton,  Hancock,  Hardin,  Henry,  Huron,  logan,  Lucas,  Mercer, 
Ottawa,  Paulding,  Putnam,  Sandusky,  Seneca,  Shelby,  Van  Wert,  Wil- 
liams, Wood,  and  Wyandot. 

Ohio  (eleventh  district) 

The  counties  of  Adams,  Athens,  Coshocton,  Delaware,  Fairfield,  Franklin, 
Gallia,  Guernsey,  Hocking,  Jackson,  Knox,  Lawrence,  Licking,  Madison, 
Marion,  Meigs,  Morgan^  Morrow,  Muskingum,  Noljle,  Perry,  Pickaway, 
Pike,  Ross,  Scioto,  Union,  Vinton,  and  Washington. 

Ohio  (eighteenth  district) 

The  counties  of  Ashland,  Ashtabula,  Belmont,  Carroll,  Columbiana,  Cuya- 
hoga, Geauga,  Harrison,   Holmes,  Jefferson,   Lake,   Lorain,  Mahoning, 
Medina,  Monroe,  Portage,  Richland,  Stark,  Summit,  Trumbull,  Tuscara- 
was, and  Wayne. 


Collector's  oflBce. 


Grand  Rapids. 


St.  Paul. 
Jackson. 
St.  Louis. 


Kansas  City. 


Helena. 
Omaha. 

Portsmouth. 
Camden. 


Newark. 


Albuquerque. 
Brooklyn. 

New  York  City. 


New  York  City. 


Albany. 


Syracuso. 


Buffalo. 


Raleigh. 

Fargo. 
Cincinnati. 


Toledo. 


Columbiis. 


Cleveland. 


NARCOTICS.  67 

List  of  collection  district.f  and  addresses  of  collectors  of  internal  revenue — Con. 


District. 


Collector's  office. 


Oklahoma. 
Oregon . 


Pennsylvania  (first  district) 

The  counties  of  Adams,  Bedford,  Berks,  Blair,  Bucks,  Chester,  Cumberland, 
Dauphin,  Delaware,  Franklin,  Fulton,  Himtingdon,  Juanita,  Lancaster, 
Lel«non,  Lehigh,  Mifflin,  Montgomery,  Perry,  Philadelphia,  Schuylkill, 
Snyder,  and  York. 

Pennsylvania  (twelfth  district) 

The  counties  of  Bradford,  Carbon,  Center,  Clinton,  Columbia,  Lackawanna, 
Luzerne,  Lycoming,  Monroe,  Montour^  Northampton,  Northumberland, 
Pike,  Potter,  Sullivan.  Susquehanna,  Tioga,  Union,  Wayne,  and  Wyoming. 

Pennsylvania  (twcnty-thira  district) 

The  counties  of  Allegheny,  Armstrong,  Beaver,  Butler,  Cambria,  Cameron, 
Clarion,  Clearfield,  Crawford,  Elk,  Erie,  Fayette,  Forest,  Greene,  Indiana, 
Jefferson,  Lawrence,  McKean,  Mercer,  Somerset,  Venango,  Warren,  Wash- 
ington, and  Westmoreland. 

Rhode  Island 

South  Carolina 

South  Dakota 

Tennessee 

Texas  (third  district) 

Utah 


Vermont 

Virginia  i  (second  district) 

The  counties  of  Amelia,  Appomattox,  Brimswick,  Buckingham,  Caroline, 
Charles  City,  Chesterfield,  Cumberland,  Dinwiddle,  Elizabeth  City,  Essex, 
Fluvanna,  Gloucester^  Gochland,  Greenville,  Hanover,  Henrico,  Isle  of 
Wight,  James  City,  Kmg  and  Queen,  King  George,  King  William,  Lancas- 
ter, Louisa,  Lunenburg,  Mathews,  Middlesex,  Nansemond,  New  Kent, 
Norfolk,  Northumberland,  Nottoway,  Powhatan,  Prince  Edward,  Prince 
George,  Princess  Anne,  Richmond,  Stafford,  Southampton,  Spottsylvania, 
Surry,  Sussex,  Warwick,  V/estmoreland,  and  York. 

Virginia  (sixth  district ) 

The  counties  of  Albermarle,  Alexandria,  Alleghany,  Amherst,  Agusta,  Bath, 
Bedford,  Bland,  Botetourt,  Buchanan,  Campbell,  Carroll,  Charlotte, 
Clarke,  Craig,  Culpeper,  Dickenson,  Fairfax,  Fauquier.  Floyd,  Franklin, 
Frederick,  Giles,  Grayson,  Greene,  Halifax,  Henry,  Highland,  Lee,  Lou- 
doim,  Madison,  Mecklenburg,  Montgomery,  Nelson,  Orange,  Page,  Patrick, 
Pittsylvania,  Prince  William  Pulaski,  Rappahannock,  Roanoke,  Rock- 
bridge, Rockingham,  Russell,  Scott,  Shenandoah,  Smyth,  Tazewell, 
Warren,  Washington,  Wise,  and  Wythe. 

Washington  (includes  Alaska) 

West  Virginia -. 

Wisconsin  (second  district) 

Wyoming 


Oklahoma. 

Portland. 

Philadelphia. 


Scranton. 
Pittsburgh. 


Providence. 

Columbia. 

Aberdeen. 

Nashville. 

Austin. 

Salt  Lake  City. 

Burlington. 

Richmond. 


Roanoke. 


Tacoma. 
Parkorsburg. 
Madison. 
Cheyenne. 


'  The  counties  of  Accomac  and  Northampton  are  included  in  the  Maryland  district. 


INDEX. 


A. 

Article. 

Acknowledgment    in   lieu    of  oath 10 

Addicts,    aged    and    inlirm 117 

Addiction,   prescriptions  for 117 

Address,    change    of 59,60,61 

Affidavit  : 

Application  for  registration 11 

Penalty  for  false 11 

Ampoules,    stamping    of 68 

Analysis,    samples    to    be    forwarded , 136 

Application  : 

Additional  form,  change  in  location 59, 6C  61 

Filing   according   to   registry   number 14 

Form  678 6,53 

Permanent  registry  number  for  renewal  applications 13 

Recording  by  collector  on  Record  10 14,  57 

Remittance    accompanying ,, 6 

Separate  application  for  each  class 15 

When  tax  is  less  than  $10 10 

Aqueous  solutions,  sale  by  retail  dealer 25 

Attendance    (personal),   definition    of 126 

Attorney,  power  of,  authorizing  signing  of  order  forms 108 

Authority   for   regulations , 155 

B. 

Branches  of  business,  separate  tax 22,23,31 

Business    name,    registration 9 

Businesses,  several  of  same  kind,  separate  tax 23 

O. 

Cancellation  of  stamps 79 

•Certificates  issued  in  lieu  of  stamps  lost  or  destroyed 63 

Change : 

Location  of  business 60,61 

Ownership " 19^  58 

Chemists : 

Order  forms  in  procuriaig  narcotics 101 

Records   required   of 93 

Tax    liability 27 

Claim   for  tax  erroneously  paid 150 

Classification  of  persons  subject  to  tax 21 

Collectors :  , 

Examination  and  forwarding  of  reports 91 

Filing    duplicate    inventory 12 

Furnishing   application   forms 6 

69 


70  INDEX. 

Collectors — Coutinued.  Article. 

Furnishing  blank  Form  680 132 

Furnishing  certificate  of  exemption  to  Governirfent   officials 43 

Imprinting  name,  address,  registry,  and  class  numbers  on  order  forms-  104 
Imprinting  name,   address,   registry,  and  class   numbers  on   special 

tax  stamps 55 

Keeping  account  of  order  forms  sold 100 

Monthly  report  of  drugs  seized 154 

Notification  of  succession  of  business,  Classes  1  and  2 92 

Preservation    of    requisitions 71 

Record  of  change  in  location-- 60,  Gl 

Record  of  stamps  issued 71 

Requiring  statements  covering  three  months  period 131 

Compounder : 

Stamping  drugs 65 

Subject  to  tax  as  manufacturer 25 

Compromise,  wilful  violations 149 

Containers : 

Labeling 75 

Loss  or  destruction i)5 

Manner  of  aflixing  stamps 67,  70 

Marking  in  conformity  with  Food  and  Drugs  Act 75 

Narcotic  content 75 

Coupon  stamps: 

(a)   for  fraction  of  year 55 

(&)   for   delinquent   taxpayers 55 

Coupon  and  sheet  stamps 55 

Court  sales 97 

Credentials  of  exempt  officials 42 

Dealers  and  practitioners 29 

Death  of  person  paying  special  tax 58 

Definitions : 

Attendance  -(personal) 126 

Chemists i 27 

Exempt  preparations  and  remedies 141 

Im]X)rter , 24 

Manufacturer  and  compounder 25 

"  Person  " 2,  52 

Personal  attendance 126 

Producers 26 

Retail   dealer 29 

"  Special  tax  " 2 

"  Stamp  tax  " 2 

Wholesale    dealer ^ 28 

Delinquency 54 

Disclosure  of  information  obtained  by  investigators 138 

Disposition : 

Drugs  upon  discharge  of  nurse 39 

Narcotics,  report  of 83,88 

Documentary  stamps,  overprinting  of 70 

Drugs : 

Analysis 136 

Dispensed,  recording  by  practitioner 126 

Exported,  subject  to  tax     74 


INDEX.  71 

Drugs — Continued.  Article. 

Furnishing  to  exempt  officials  upon  certificate 43 

Furnishing  to  unauthorized  persons  by  exempt  officials 47 

Imported,  subject  to  tax 64 

Importer,  manufacturer,  etc.,  monthly  returns 81  to  8.5  inc. 

Interstate  shipment 133 

Loss  in  transit 95, 113 

Lost  or  destroj-ed 95 

Manner  of  keeping 94 

New  derivatives  must  be  .stamped 72 

Possession  of  nursf^ 39 

Preparations  and  drugs  not  for  satisfaction  of  drug  habit 117 

Procedure  in  case  of  theft 96 

Public  .sale ^ 98 

Reraanufacture ;  new  tax  liability 72 

Segregation  and  safe  keeping 94 

Seizure  and  forfeiture SO,  154 

Selling   in   court 97 

Subject  to  Food  and  Drugs  Act 75 

Supplying  of,  to  ocean-bound  ve.s.sels 99 

Transfers  from  one  department  to  another 90 

Traveling  .salesmen,  sale  through ' 40 

Unstami>ed,  .subject  to  seizure 80 

Withdrawal  from  customs 100 

E 

Employer,  when  respon.dble  for  acts  of  employee 37 

Enforcement  of  the  law 153 

Entire  narcotic  preparation  taxable 66 

Evidence  of  exemption 42 

Execution  and  filing  of  order  forms 107 

Exempt  officials : 

Caution    required i 47 

Engaging  in  private  business 41 

Exemption  must  be  evidenced 42 

Orders,  preparation  and  filing  of 45 

Prescriptions  written  by 44 

Procurement   of   drug 43 

Records 46 

Special  tax  liability 48 

Stamping  drugs 41,  77 

Exempt  preparations : 

Definition , 76 

External  and  internal  administration 142,  143 

Manner  of  ordering 147 

Orders  taken  by  traveling  salesmen 147 

Peddlers  of 139 

Records  of ' 148 

Registry  number  of  dealer 147 

Selling  of,  without  prescription 145 

Statement  of  transactions  in 131 

Tax  liability  of  manufacturers  and  dealers 140 

Taxability 141 

Ex^anption,  Government  officials 77 


'72  INDEX. 

Article. 

Explanatory 1 

Exported  drugs 74 

Express  package  unclaimed 98 

External  preparations 143 

F. 

Failure  to  register  and  pay  tax '. 51 

Failure  to  register  within  required  time 54 

Files : 

Applications,  filing  numerically 14 

Hospital  records 129 

Order  forms 107 

Improperly  written  and  mutilated ^_  111 

Inspection  by  Treasury  officers 134 

Original  inventory  kept  by  maker 12 

Prescriptions 124 

Prescriptions  filed  separately 119 

Records,  exempt  preparations 148 

Pertaining  to  analytical  work 93 

.    Firm,  authority  of  member  to  sign  order  forms 108 

Fixed  place  of  business  necessary  for  registrant 36 

Forfeitures 154 

Unstamped  drugs SO 

Freight  packages,  unclaimed 98 

G. 

General  provisions  of  law  applicable 53 

Government  institutions,  when  exempt 49 

Government  officials: 

Exempt  from  payment  of  tax 77 

Exempt  from  registration 16 

H. 
Hospitals: 

Pvecords  of 129 

When  exempt  from  payment  of  tax 49 

I. 

Imported  narcotic  drugs  taxable 64 

Importer ; 

Payment  of  tax 65 

Stamping  drugs  before  removal  from  custom's  custody 69 

When  liable  to  special  tax 24 

When  not  liable  to  additional  tax 24 

Who  is  also  manufacturer 24 

Incurable   disease 117 

Individual  container : 

(a)  Unit  of  tax : 68 

(&)   Ampoules 68 

Inspection  of  records 134 

Institutions 35 

Exemption  from  payment  of  tax 49 

Practitioner 30 

Internal  administration 142 


INDEX.  73 

Article. 

Interual  revenue  laws  applicable 53 

Interstate  shipments  prohibited ^^ 133 

Inventory,  annual 12 

Form  713  obtained  from  collector 12 

Investigation,  confidential   in  nature 138 

Registered  persons 135 

Unnecessary  interference  in  making 137 

Issue  and  sale  of  order  forms 104 

Items  entered  on  order  forms 109 

Itinerant  vendors 3g 

L. 

Labels  on  containers  (prescriptions) 125 

Law,  purpose  of 3 

Liability  : 

Classes  of  persons  liable 21 

Failure  to  register  and  pay  tax 51 

More  than  one  tax 15 

List  of  names  of  registered  persons 57 

Location,  change  in 60,61 

Losses,  by  accident 95 

Lost  or  destroyed  order  forms 111 

M. 

Manner  of  preparing  and  filing  prescriptions 119 

Manufacturer : 

Definition  of 25 

Disposition  of  drugs 83 

Exempt   preparations 25 

General 81 

Production  for  sale 25 

Receipts  of  drugs 82 

Returns 81,  92 

Selling  ovpn  product 29 

Stamp  tax,  on  account  of 64 

Stamping  drugs 65 

Summary 84 

When  liable  as  a  retail  dealer 29 

Measure  of  tax 18 

More  than  one  place  or  class  of  business 15 

Narcotic  drugs : 

Dispensed   by   practitioners 126 

Dispensed  from  original  stamped  packages 29 

Found  in  possession  of  nurse 39 

Lost  in  transit 95 

Order  forms,  requirement 100 

New  registrants 7 

Nurses : 

Narcotics  in  possession  of 39 

Registration,  not  allowed 39 

O. 

Oath,  when  required 10 

Occupations,  several  different 22 


74  INDEX. 

Article. 

Ocean-bound  vessels,  narcotics  supplied  for 99 

Offices 32 

Officials : 

Certificate  for  exemption  of 42 

Exempt  for  official  business  only 41 

Exempt  from  registration ^ 41 

Exempt,  not  required  to  stamp  drugs 41 

One  registry  number  covering  several  classes,  same  location 15 

Order  forms: 

Additional  forms  in  case  one  is  not  sufficient 107 

Analytical  chemists'  use  of 101 

By  whom  procurable 103 

Certificate  in  lieu  of . 43 

Change  in  ownership 112 

Execution   and  filing 107 

Exempt   preparations 147 

Improperly  written  or  mutilated 111 

Issue  and  sale  of 104 

Lost  or  destroyed 111 

Method  of  entering  items  on 109 

New  form  for  goods  lost  in  transit 113 

Ocean-bound  vessels 99 

Original  and  duplicate  executed  simultaneously 107 

Partial  filling  of 110 

Power  of  attorney  on 108 

Purpose  of 100 

Requisition  for,  on  Form  679 104 

Signing 108 

Unused 112 

Use  of,  once  only 110 

Used  during  registration  period  only 112 

When  not  required 112 

Orders,   imaccepted 110 

Original  inventory  kept  by  maker 12 

Ownership : 

Business,  change  in 19 

Information  as  to 9 

P. 

Package,  change  of,  tax  liability 26 

Package,  creator  of  new 73 

Paregoric,  status  of 144 

Partial  filling  of  prescriptions ., 121 

Partners   separately   engaged 34 

Partnerships 34 

Peddlers  of  exempt  preparations , 139 

Penalty 153 

Failure  to  notify  of  change  in  location 62 

Failure  to   register  or  render   returns 153 

Permanent  registry  number  of  all  renewal  applications 13 

Person,  definition  of 2 

Persons  who  may  register 4 

Personal  signature  on  application  for  registration 8 


INDEX.  75 

Article. 

Posting  of  special  tax  stamp 56 

Power  of  attorney  on  order  forms 108 

Practitioner : 

Definition 30 

Liable  to  tax  as  dealer 29 

Personal  attendance  defined 126 

Record  of  drugs  dispensed 128 

Record  of  stocli  solution  dispensed 130 

Separate  registry  number  if  qualified  in  another  class 15 

Preparations  and  remedies,  when  exempt 142 

Prescriptions : 

Addiction 117 

Aged  and  infirm  addicts 117 

Exempt  oflicials 44 

Exempt  preparations 145 

Form  of 123 

Incurable  disease 117 

Labeling  drugs  secui'ed  on 125 

Manner  of  execution 119 

Manner    of   preparing   and    filing 119 

Partial  filling  of 121 

Responsibility  for  properly  preparing 118 

Separate  file 124 

Signature  on  back 119 

Telephone  orders 122 

Who  may  fill 116 

Who  may  issue 115 

Principals 3!7 

Private  formulae  not  exempt  under  Section  6 146 

Producers : 

Definition 26 

Liability  to  tax 26 

Stamping  drugs 65 

Public  Health  Service  order  forms  required 99 

Punishment 153 

Purpose  of  law 3 

Q. 

Qualification,   evidence   of 11 

Quantity,  aqueous  solution  to  be  furnished  by  retailers 25 

Stock  solutions,  records 130 

R. 

Railroad  companies  under  Federal  control 50 

Receipts 82 

Records : 

Applications,  card  Record  10 14 

Drugs    dispensed 126 

Stolen 96 

Used  for  analytical  work 93 

Exempt  officials 46 

Exempt    preparations    sold . 148 


76  INDEX. 

Eecords — Continued.  Article 

Hospitals 12» 

Insi>ec'ti<)n     134 

Monthly    returns 81 

Narcotics  used  in  institutions 129 

Retail    dealers , , 127 

Stamps  issued 71 

Stock   solutions   dispensed 130 

Redemption  of  stamps 150 

Refilling   narcotic   prescriptions 120 

Registered  persons : 

Class  1,  cancel  stamps 79 

Class  1,  secure  stamps  on  Requisition  Form  78G 71 

Class  1  and  2,  monthly  returns  of  drugs 81 

Class  5,  records  of  exempt  preparations  sold 148 

Employees    of 38 

Investigation    of 135 

Registration : 

Annually  on  or  before  July  1 7 

Application    for ^ 6 

Branches 31 

Each  branch  of  firm  or  corporation 15 

Each  class  and  place  of  business 4 

Government  officials,  exempt  from 16 

Institutions    (hospitals,    etc.) 35 

Manufacturers  of  and  dealers  in  exempt  preparations 139 

Offices,   when   necessary 32 

Warehouses 33 

Who    required 5 

Registry  nunfbers: 

Issuance  serially  in  each  district 13 

Requisition  form 104 

Special   tax  stamps 55 

Regulations : 

Arrangement    of 20 

Authority  for 155 

Method  of 20 

Remanufacture "2 

Removal  of  business : 

Notice  to  collector 59 

Penalty  for  failure  to  record 62 

To  another  collection  district 61 

To  another  place  in  same  district 60 

Repacker,  as  producer  registers  in  Class  1 26 

Reports : 

Drugs    stolen 96 

Examination   and   forwarding  by   collectors 154 

Requisitions : 

Order  forms  on   Form  679 104 

Order  forms,  signature  on ^ 106 

Stamps  on  Form  786 71 

Reregistration,   annually  before  July   1 7 

Retail   dealers : 

Amount  of  aqueous  solution  furnished  by 25 

Definition 29 


f 


INDEX.  77 

Retail  dealers — Continued.  Article. 

Records 127 

Signature  of  per.son  receiving  drugs 119 

Supplying  solutions  for  office  practice 78 

Returns,   monthly 81 

S. 

Sale.smen,  traveling,  soliciting  orders 40 

Samples : 

Analysis,    recording 128 

Forwarded  for  analysis 136 

Seizure  and  forfeiture  of  tinstamped  package SO 

Seizures,  shipment  to  Divi.sion  of  Technology 154 

Separate  application  for  each  class 15 

Separate  registry  number  as  practitioner 15 

Sheet  .stamp : 

(o)    For  Class  1 55 

(6)    For  full  year 55 

Signature: 

Application   for  registration 8 

Form  679 - 106 

Order  forms lOS 

Special  tax : 

Definition 2 

Fraction   of  year 18 

Liability  of  each  branch  of  firm 31 

Manufacturers  of  and  dealers  in  exempt  preparations 140 

Payment a 

Rates 21 

Separate  returns  for  each  of  several  classes 15 

Special   tax  stamp 55 

Certificate  in  lieu  of 63 

Issuance  for  each  class 1 22 

Posting  in  con.spicuous  place 56 

Stamp  tax : 

2sarcotics  importetl  and  manufactured 64 

Rate 66 

When   payable 69 

Stamps : 

Account 85 

Affixed  by  whom 65 

Affixed  in  error 150 

Affixed  to  every  individual  bottle,  etc 67 

Cancellation 79 

Furnished  to  Class  1  registrants  only 71 

Manner    of   attaching 70 

One  strip  stamp  necessary  on  each  package 67,70 

Overprinted    documentary 70 

Rate 66 

Redemption 150 

Requisition    on    Form    786 71 

Sizes  and  denominations 70 

State  laws,  qualified  under 11 

Statement  covering  three  months'   period 131 


78  INDEX. 

Stock  solution:  Article. 

Records,  dispensing  minute  quantities 130 

Selling    of 130 

Strip  stamps : 

Combined  with  documentary  stamps 70 

One  necessary  on  each  package 67,  70 

Required  denominations  furnished  later 70 

Successors,  registering  of  necessary  data 58,92 

T. 
Tax: 

Application  to  entire  narcotic  preparation 66 

Exported  drugs 54 

Imported  drugs 53 

Measure 66 

Payment 17 

Separate  classes  of  business 21 

Taxpayers,  list  of 57 

Telephone  orders,  prescriptions 122 

Time : 

Payment  of  tax 69 

Registration 7 

Transactions,  report  of 81  to  92 

Transfer : 

Drugs  from  one  department  to  another 90 

Special  tax  stamp 58  to  61 

U. 

Unaccepted   orders 110 

Unclaimed  freight  and  express  packages 98 

Unit  of  tax 68 

V. 

Violation  of  section  8176,  Revised  Statutes 62 

W. 

Warehouses 33 

Wholesale  dealei's : 

Definition 28 

Disposition  of  drugs 88 

Receipts  of  drugs 87 

Summary 89 

When  liable  as  manufacturer 28 

Withdrawal,  drugs  from  customs  custody 100 

Stamps  to  be  attached  before-- 69 

o 


LAW  LIBRARY 

UNIVERSITY  OF  CALIF©RNU 

LOS  ANGELES 


;    GAYLAMOUNT 

J    PAMPHLET  BINDER 


Manufactured  by      » 
'^^  GAYLORD  BROS.  Inc.  • 
I         Syracuse,  N.Y.         , 

I         St-^ckton,  Calif.         > 


U"t': 


>  :H>^l^ 


